Which way does the penny fall in the pig market?

As we already wrote it is an exciting market that does not lead to clear price movements. The question now is whether the quotes will meet again next week and who will take action. The penny can go either way: either upward corrections or downward corrections. Of course, the current situation could continue for even longer, but it is expected that the imbalance will be resolved again next week. 

Without wanting to doom-mongering, downward corrections seem to be a more likely scenario at the time of writing. That would mean that the VEZG quotation would drop by about five cents. Some of the German contributors already indicated that direction for this week, but did not yet have the upper hand. It is also unlikely that Vion will take the initiative on Monday and move upwards again. 

Supply is not large, but demand is low
Looking at the Dutch market, the supply is not so large that slaughterhouses can draw from a wide arsenal of pigs. On the other hand, the desire to slaughter is not that great during this holiday period. Meat sales are weak and the processing industry is not short of a lot of raw materials. There are plenty of pigs in Germany. Tönnies then states that they will take in fewer pigs if the quotation does not go down. With the sow quotation they put their money where their mouth was and 10 cents were deducted from the price. 

DCA Benchmark Price - Pigs
Given the circumstances, it is not surprising that the quotations for the DCA Exchange Price 2.0 vary widely, from unchanged to a reduction of five cents. However, an unchanged mutation prevails, leaving the price for slaughtered pigs at €2,06 per kilo and the price of live pigs at €1,62 per kilo.

Click here for an explanation from DCA Market Intelligence on the listing.