Pig prices set in concrete

Typical for the flat market is the German pig price (VEZG) which remained at €2 per kilo for the eighth time in a row on Wednesday. In the Netherlands too, the slaughterhouse quotations have been moving sideways for some time. The market is in a vacuum, with on the one hand an adequate supply of pigs and on the other hand moderate demand for meat. Although sales are certainly not disappointing for this time of year.

How the market will develop in the coming weeks is still difficult to say. Just like last week, the supply of pigs is on the large side, partly due to the cancellation of a slaughter day earlier this week in Germany. Later this month, another slaughter day will be cancelled. In addition, the supply on the slaughter line has increased due to accelerated growth in fattening pigs.

levies
A development in the background is that EU countries today (Friday 4 October) have definitively agreed to increase import tariffs on Chinese electric vehicles. The Netherlands has also agreed to the import tariffs, while Spain abstained from voting in order not to jeopardise pork exports. The levies further exacerbate relations between China and the EU. China has previously initiated an anti-dumping investigation into pork and dairy products, among other things, as a countermeasure. China may continue to build up the protectionist wall in the coming period. A blessing in disguise is that Chinese demand for pork and by-products has been at a fairly low level for some time.  

Stable market
The bottom of the pig prices feels quite solid. At the same time, the upward potential is small. There may be more music in the market as Christmas approaches, but it is not there yet. A continuation of the stable price pattern therefore seems likely in the coming weeks.

The DCA Beursprijs 2.0 remains unchanged for slaughtered pigs at €1,96 per kilo. The price of live pigs also changes at the same time to €1,54 per kilo.

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