Analysis Pigs
Pig price finally takes a step up
Although the market still does not feel very convincing and stable, the DCA Stock Price is taking a step upwards. The tight pig supply has created some appetite.
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The cold and wet weather conditions in Northwest Europe are not ideal for getting the market going, but nevertheless there is no shortage of that this week. There is a kind of feeling among traders who argue for an increase: 'now or never'. There is a strong desire to increase in the primary sector to compensate for the high piglet costs that have been high for months.
Internet stock market up sharply
The sharp increase in the Internet stock market has provided the final push to get the market moving. The indicator of the German pig market rose today by no less than 9 cents to €2,37 per kilo. If the listing holds up next Tuesday, the VEZG listing will most likely also make a move next Wednesday. This would finally break the months-long stable trend.
It is not so much an increasing demand for meat, but mainly the tightening pig supply that is stimulating the market at the moment. Dutch slaughterhouses are in dire need of pigs to fulfill their slaughter plans. Some 270.000 pigs were slaughtered last week and the number is likely to decline further in the coming weeks.
Stock market price on the rise
Meanwhile, meat sales continue to disappoint. The mediocre summer weather is the big spoilsport. This means that pig prices are likely to quickly reach a ceiling. The question remains whether slaughterhouses will follow the movement of the DCA Exchange Prize 2.0. Yet traders often argue for an increase. Based on the statements, the quotation for slaughtered pigs increases by 3 cents to €2,18 per kilo. The price of live pigs increases by 1 cent to €1,70 per kilo.
Click here for an explanation from DCA Market Intelligence on the listing.