Analysis Pigs
Pig prices fall sharply, but not for long
The pig market has been shaken up considerably this week by the reductions in Germany. Although this did not come completely out of the blue, it was expected that pig prices in North-Western Europe would be able to counter the pressure that has blown over from Southern Europe. That does not appear to be the case. The DCA Beursprijs is also affected and is moving down considerably.
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It takes some getting used to now that there is no longer a 'two' for the German pig price, which has been the case for the past two years. Of the Dutch slaughterhouses, Van Rooi also immediately put on the brakes last Wednesday, the other slaughterhouses have postponed the reductions until next week. This is striking, because in recent months Van Rooi often reduced later than other slaughterhouses, in order to accommodate their suppliers. Now the roles have been reversed.
Spanish edition
Incidentally, it is not so much Germany, but mainly Spain and France that have put pressure on the European market. In Spain, the quotation has been falling for weeks. This means that Spanish integrations can always offer the meat cheaper. And because the Asian countries do not ask for large volumes, it has become a crowding-out market here. The pig quotations in North-Western Europe have thus become victims of the Spanish rat race downwards. The cancellation of a slaughter day next week in Germany (due to Reformation Day and All Saints' Day) means that there was no stopping it.
Not favorable for meat market
The reduction in the price of pork does not promote meat sales. Many buyers (retailers & food service companies) are still partly uncovered for November and December, but will probably hold off for a while. They are probably hoping for 'December bargains' on the spot market. The relatively high temperatures at the end of October do not really help the consumption of traditional winter components such as pork belly.
Supply not problematic
The supply of pigs is not problematically large. There are enough pigs available, but traders are usually well on top of deliveries (unfortunately this cannot be substantiated with slaughter figures, because these are missing from RVO for week 42). It is also unlikely that many pigs will be 'brought forward' now that prices are under pressure. The German quotation will probably continue to move sideways next Wednesday, is often the thought among market insiders.
The DCA Exchange Price 2.0 drops by €0,07 to €1,89 per kilo for slaughtered pigs. The price of live pigs drops by €0,06 to €1,48 per kilo.
Click here for an explanation from DCA Market Intelligence on the listing.