Analysis Pigs
Confidence in pig prices is increasing again
The floor under the recently stabilized pig prices was fragile at first, but is starting to feel stronger. It is still too early to speak of a recovering market. However, the demand for meat is slowly starting to pick up. In the meantime, the pig supply remains on the tight side.
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There is not much action at the moment on the pig market. The Internet fair, which remains the same auction round after auction round, is a silent witness to this. However, from the perspective of pig farmers, the situation is brightening up a bit. Almost all traders are up to date with deliveries and slaughterhouses are starting to ask for more supply again.
Hams are in better demand
There is a reason for this, because the meat processing industry has left the holiday period behind and is in need of more raw materials. Incidentally, demand is not yet overwhelming. It is noticeable that the carcass parts that often do poorly in the summer period are being sold somewhat better again. Hams, for example, are finding a bit more demand again, also in the Southern European countries. A sign that autumn is approaching.
We also saw it earlier this week at the meat parts prices from DCA, whereby the hams and shoulders increased in value again. The necks, a typical summer product, decreased in price. On balance, however, the carcass value of the pig increased by 1 cent. This is still too little to get the pig prices moving.
Low slaughter figures
It is possible that an upward price movement is possible in September. Historically, this month is never boring and increases are sometimes possible, such as in 2022. However, it is true that pig prices generally do not increase further in the second half of the year, so we must be careful not to have too high expectations. But perhaps the market can surprise due to the tight supply.
In the past few weeks, the Netherlands slaughtered less pigs than it has in ten years. This while a few weeks earlier we were still at the level of last year. However, a seasonal increase in supply seems to be on the way, although we still have to wait and see what the influence of the reportedly many stoppers will be on the Dutch slaughter figures. Something that slaughterhouses are also very curious about. In Germany, the supply is increasing again and with more than 727.000 pigs, the slaughter figure was the highest in months.
DCA Benchmark Price - Pigs
Next week the DCA Exchange Price 2.0 remains stable at €1,94 per kilo for slaughtered pigs. The price of live pigs remains at €1,53 per kilo.
Click here for an explanation from DCA Market Intelligence on the listing.