Analysis Pigs
Summer weather coming, but showers over the pig market
Much in life is relative, including the peace that seemed to have arisen on the troubled European pig market. Despite the relatively tight supply, pressure on prices is starting to increase again, although the DCA Stock Exchange Price is not yet responding to this.
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The pig market does not seem to be allowed to take a break during these holiday weeks, because price pressure is emerging again. Slaughterhouses are making a fuss to reduce purchasing prices. And there is certainly some truth in this, given that meat prices are under pressure. We already saw this last Monday flesh mutations of DCA, with heavyweights like the hams, middles and necks going down. Based on the changes, the pig price should - theoretically - fall between 2 and 3 cents.
Seeing the storm hanging in the air
However, that did not happen last Wednesday. Both the German VEZG quotation and the Dutch slaughterhouse quotations remained unchanged. The quotations also remained in place in Belgium and Spain. The German Internet Exchange did lose a fraction on Friday, as did the sow listing of Danish Crown in Denmark. Nevertheless, the calm week seems to be a prelude to a more turbulent week to come. Signals are coming from various corners of the market that prices could drop (considerably). Traders also sometimes see the mood brewing.
Summer weather coming
Now it is true that a week of beautiful summer weather is finally upon us. This is of course a bonus for many people during the construction season, but it is also good for the fluctuating pig market. It can give meat sales a boost. One thing is that retailers' stocks are in good order, which means they have a buffer. It should not be forgotten that many Dutch people are currently living abroad, which also means a drop in demand. The support from the weather is therefore only relative.
Slaughter figures
The pig supply is not excessively large, according to the market. But from the perspective of unambitious slaughter plans due to the holiday schedules, there is certainly no shortage. In Germany, the slaughter figure dropped again last week to the 700.000 mark. However, slaughter has been taking place above last year's level in recent weeks. The Dutch slaughter figures from last week have not yet been published.
DCA Benchmark Price - Pigs
Whether the soup is eaten as hot as it is served by some market parties will become clear next week. The DCA Scholarship Award 2.0 remains unchanged based on the statements. The price for slaughtered pigs remains the same at €2,06 and the price of live pigs at €1,62 per kilo.
Click here for an explanation from DCA Market Intelligence on the listing.