Pig price under pressure due to large supply

Expectations for the German pig price next Wednesday range from minus €0,05 to even minus €0,12 per kilo. The European meat trade is already taking this last scenario into account in their negotiations and is exerting considerable pressure. Apart from the fact that meat sales are already difficult, this makes sales even more difficult. There is particularly great price pressure on the fore-end and hams, heavyweights within the carcass, at the beginning of January.

Pig's plug
In the meantime, the supply of pigs is ample, or even very ample. The view of each trader differs in this, but friend and foe agree that there is a pig plug. It will probably take several weeks before it disappears from the scene again. In the Netherlands, slaughtering also takes place on Saturdays, but not by every slaughterhouse. Incidentally, the will is often there, but staff shortages make this difficult. People also point to the NVWA, which apparently cannot provide an inspector for the slaughter line.

Pressure too high
Traders often believe that the pressure in the market is too great to keep the DCA Exchange Price (which also acts as an expected price) unchanged. At the same time, contributors of the listing do not want to lower it in the direction that Germany is probably heading. Especially since pig prices in the Netherlands have already fallen by €0,04 in December, at the initiative of the slaughterhouses.

Based on the data, a reduction of €0,04 per kilo is implemented for week two, with the DCA Exchange price for slaughtered pigs coming to €1,81 per kilo. The listing for live pigs also drops by €0,04 to €1,41 per kilo. 

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