Analysis Pigs
Chance of Christmas sprint passed, pig's gag at the door
If the pig price were to make a Christmas sprint, it could happen for the last time next week. However, market conditions do not allow this, although the demand for meat has increased noticeably.
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However, the increasing demand for meat is counterbalanced by a persistently large supply of pigs. Even now that more is being slaughtered in North-Western Europe, the supply is struggling to shrink. The high slaughter weights are making this difficult.
Decline of Red
It is worth mentioning that Van Rooi Meat lowered the pig price by €0,02 to €1,70 per kilo this week. In fact, it is a reduction, but compared to other slaughterhouses they are still listed 1 cent higher. The movement does underline that higher pig prices are no longer possible in the last weeks of the year. The market is also moving sideways elsewhere in Europe.
Pig's gag in front of the door
The question that now arises is whether the supply will put pressure on the market in the coming weeks. The holidays fall in the middle of the week this year, which is very unfavourable. This means that a pig plug is hanging over the market. In other years, this usually led to price corrections. This is therefore a scenario to keep in mind. In combination with the high weights, the need to deliver pigs in advance will probably be quite high in the coming weeks.
The DCA Beursprijs 2.0 remains the same at €1,89 per kilo for slaughtered pigs. The price of live pigs is also unchanged at €1,48 per kilo.
Click here for an explanation from DCA Market Intelligence on the listing.