Analysis Pigs
Slaughter weight reveals shrinking pig supply
The pig market is currently in a transition phase with the focus slowly shifting to the summer period. An improving market could happen in the coming weeks, but that would require some luck. However, the supply is becoming noticeably smaller.
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The most surprising thing this week was the corrective movement in pricing at Compaxo, Westfort and Pali. They increased purchasing prices after they fell a few weeks ago without any immediate reason. According to traders, Vion has also partly compensated the difference with the weekly allowance. Only Van Rooi kept the payout price unchanged and thus gained goodwill. This could come in handy later this year when pigs become scarce.
These signals are becoming increasingly visible. Traders indicate that slaughterhouses are asking for more pigs, now that meat sales are becoming more flexible. Some traders claim that the shortage would be exposed in a full slaughter week, but that this is camouflaged by the cancellation of a slaughter day on Whit Monday. At 99,50 kilos, the average slaughter weight is still quite high, although the trend is rapidly decreasing. Until recently, the 2024 line was above last year and also the long-term average, but it is now below that. A clear signal that supply is drying up.
Depending on the weather
There are some mixed signals coming from the meat market. Sales have improved somewhat in recent weeks, but not yet convincingly. Sales of barbecue parts such as necks are going quite well, but this does not apply to the hams, which are a heavy weight within the carcass and therefore determine the value. We have to wait for demand to increase in the southern parts of Europe when the tourist season starts there. It takes some luck to gain momentum in the market. Much will depend on the weather. Consumption increases during sunny and warm weather, while at the same time growth slows down.
DCA Scholarship Award
Partly due to the cancellation of a slaughter day next week, traders do not always see reason to tinker with the DCA Exchange Price 2.0 (Exchange). Nevertheless, the averaging results in a plus that should serve as a prelude to the Fair in week 22. The quotation for the slaughtered pigs therefore amounts to €2,13 per kilo, a plus of €0,01. The price for live pigs remains the same at €1,68 per kilo.
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