Analysis Pigs
There is more to come on the rising pork market
The long-awaited and cherished price increases on the pig market have finally started this week. The question that now logically arises is whether there is more to come.
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While the German VEZG quotation is still (for months) unchanged at €2,20 per kilo, the Dutch quotations are improving. This is also the case in Belgium and Poland. It is a strong signal that the market is picking up in the broken week of Pentecost. The fact that the German market has remained stagnant is probably because there will be another slaughter day in the Catholic states next week. This is because of the celebration of Corpus Christi on Thursday, May 30th. Then the fun is over and the tight German pig supply will probably soon be exposed.
Need for pigs
This is already the case in the Netherlands. The 286.959 pigs slaughtered in the broken week after Ascension Day are not large numbers. The slaughter figure will continue to decline in the coming weeks, as is historically common. Meanwhile, slaughterhouses increasingly need full slaughter hooks now that meat sales are picking up. Demand hasn't exploded yet, but there is appetite in the air. Many customers in retail and food service are covered for a short period of time and that can provide an extra incentive.
European Football Championship
Pig prices are likely to rise further in the coming weeks. It is important for the Dutch market that the entrenched German quotes also start to move upwards. The slaughterhouse quotations may therefore take a pause next week, only to pick up further from June onwards. Then the European Football Championship will also start in Germany, which will probably give an extra boost to sales on the meat market. Crucially, the demand for hams has improved, which is a heavyweight within the carcass. This is currently lagging behind, in contrast to the necks and shoulders for which there is a lot of sales.
DCA Scholarship Award
The DCA Exchange Prize 2.0 still has some catching up to do based on the increased slaughterhouse quotations in our country. The quotation for the slaughtered pigs will therefore increase by €0,02 to €2,15 per kilo. The price of live pigs increases by €0,01 to €1,69 per kilo.
Click here for an explanation from DCA Market Intelligence on the listing.