Pig market is looking forward to the end of the holiday

Earlier this week, the market was confronted with a sharp drop in the German pork price (VEZG), but hardly anyone was surprised by this. A significant reduction could have been planned in advance. What can still be concluded is that the drop of 10 cents at the top of the range was due to negative expectations. This once again highlights the weak sentiment in the market.

Ample stocks
In short, it means that meat sales do not match supply. Full cold stores at slaughterhouses and ample stocks at retailers dampen any form of sentiment. Although the sun appears more often again, this does not lead to additional demand for BBQ meat. Perhaps among consumers, but supermarkets have purchased extensively in the pre-season and still have plenty of stock to deliver. The many price promotions on the shelves are a silent witness to this.

Holidays on the way
The holidays are coming to an end in Germany. Schools have started again in Lower Saxony this week and in North Rhine-Westphalia it will be closed at the end of next week. The following week, schools will also start again in the Netherlands in the South region. In fact, this is now the only hope of slaughterhouses for better meat sales when the majority of holidaymakers return and the meat industry can operate at full speed again.

Many meat buyers are still waiting to hedge volume, now that the market is trending downwards. In a market with a short horizon, anything can happen later in the third quarter and also in the fourth quarter. The export markets outside Europe require limited volumes. Europe is priced somewhat more favorably, but is still too expensive compared to providers in the United States and Brazil.

Assumption of Mary
The mood in the market will be very dull towards next week, although major price drops are no longer expected. The demand for pigs and carcass parts is even lower in various countries, because the Assumption is celebrated on Thursday, August 15 in a number of countries such as Poland and parts of Germany. This takes one day of processing. It makes a difference that the pig supply itself is not very extensive, so the effect of this is manageable.

DCA Benchmark Price - Pigs
Given the recent price developments in the Netherlands and Germany, the DCA Exchange Price 2.0 has to take another step downwards. Based on the statements, the quotation for slaughtered pigs decreases by €0,08 to €1,98 per kilo. The price of live pigs drops by €0,06 to €1,56 per kilo.

Click herefor an explanation from DCA Market Intelligence on the listing.