Analysis Pigs
Pig market sees pressure on prices decrease slightly
Price pressure on the pig market is decreasing slightly, although both traders and slaughterhouses believe that things are still far from easy on the meat market. Slaughterhouses complain about difficult meat sales and piling up meat, traders see that they can sell fewer animals than they hoped.
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However, there are signals that the pork price (the DCA Stock Price) does not have to fall further for next week, but can remain the same. The rate of decline has been decreasing in recent weeks. Traders sometimes still have a decent supply of animals to sell, but selling to Italy at a lower price is a leap of faith that certainly does not appeal to everyone.
Then the pigs should gain a little weight, they think. Slaughterhouse Tönnies reports that it slaughtered 753.000 pigs this week with an average weight of 99,28 kilos. That is not very high. In that respect, there seems to be less pressure in Germany than in the Netherlands. Last week the average slaughter weight there was already close to 103 kilos. This week it has clearly gone beyond that in many cases.
The expectation is that the supply of slaughter pigs in Germany will decrease in the coming weeks and space will become available again for Dutch animals. This week's Internet fair seems to be making some progress in this regard with a plus of 4 cents per kilo. Yet such a movement is still a bit too much for the DCA stock market price 2.0 and stabilization is the highest achievable. The slaughtered pigs remain at €1,94 and the live ones at €1,54.
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