Analysis Pigs
A final push is still lacking in a tight pig market
The headline of the month of June is gone, but pig prices are still showing no sign of rising. Moreover, unrest has crept into the market now that African swine fever has been detected on a large pig farm in Germany. This also has consequences for slaughterhouses in the region that have suspended production.
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Even now that the broken slaughter weeks are behind us, the German pork price continues to move stoically unchanged. For the fourteenth week in a row, VEZG is recording €2,20 per kilo. The market has often experienced stable periods in the past, but they often did not last as long as now. It's not a record yet, but it's coming close. In the winter of 2018/19, the quotation remained stable for sixteen weeks in a row.
German ceiling
Dutch pig prices have recently risen somewhat, but are currently reaching a ceiling. All of pig-loving Europe is waiting for prices to rise in Germany. The question is when this will happen. Especially now that a pig farm in Vorpommern-Greifswald was hit by ASF this week. This may not be the most intensive pig farming area in Germany, but it is nevertheless a cause for concern.
Especially because pigs from the company in question were delivered to Tönnies in Weißenfels this week. Production at that location has been suspended for the time being and it is not yet known on Friday afternoon when it will resume. This does not have to be a problem for the already tight pig supply in Germany.
Relatively cold weather
The pig supply is also limited in the Netherlands, just like in many other European countries. Unfortunately, the slaughter figures from last week in our country are missing, but they are probably well below the 300.000 limit (even after the broken week with Pentecost). Yet the tight supply in itself is not enough to get the market moving. An increasing demand for meat should provide the final push, but the obstacle to this is the relatively low temperatures. Although the heavy rainfall is behind us, it remains on the cool side in Northwestern Europe. This will probably remain the case in the coming weeks, which is why there will not be any mass barbecues yet.
European Championships start
The European Football Championship starts in Germany in a week. Perhaps the demand for meat will increase, but at the moment there is still no conviction in the meat market. Insiders also warn against overly high expectations, due to persistently weak exports outside Europe. However, it appears that something will be possible in the coming weeks, which is desirable for fattening pig farmers in particular as compensation for the high piglet costs.
The DCA Exchange Price 2.0 for slaughtered pigs remains at €2,15 per kilo and the price of live pigs remains at €1,69 per kilo. Last year around this time, pig prices rose quite rapidly, but the form they were in then is still missing.
Click here for an explanation from DCA Market Intelligence on the listing.