Pig prices are once again on solid ground

Dutch slaughterhouses implemented a reduction of 5 cents this week, bringing them back to their desired price level, which is in line with the decreased meat prices. The German VEZG quotation remained stable this week at €2 per kilo, after no less than 10 cents were deducted from the price last week.

Short horizon
It is difficult to say what will happen next. There is no sentiment in meat sales, but it is noticeable that demand is recovering slightly now that the holidays are almost over. The meat processing industry is also slowly but surely needing raw materials again. The hams are still difficult to sell because Southern Europe is still on holiday. 

The horizon in the market is short, as has often been indicated. Many customers in retail and food service still have to determine their volumes for the fourth quarter and are waiting to do so as long as possible. However, the downward trend seems to be over.

The Dutch pig supply appears clear, or sometimes even a bit tight. A few days of warm weather have caused some slowdown in growth, but not excessively. The slaughter figures for last week are not yet known, but we are likely to see another seasonal increase in the near future.

DCA Benchmark Price - Pigs
After the holiday period it will become clear how sentiment will develop. Due to the reductions at slaughterhouses, the DCA Stock Exchange Price 2.0 has to take another step downwards. The quotation for slaughtered pigs drops by 4 cents to €1,94 per kilo and the price of live pigs drops by 3 cents to €1,53 per kilo.

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