Analysis Pigs
Leadingly heavy supply of pigs no longer puts pressure on prices
The turbulent start of the year has made way for more peace and stability on the pig market. This is reflected in the unchanged quotations, both in the Netherlands and elsewhere in Europe. The DCA stock price will also remain the same next week. For the time being, the pigs are not yet becoming more expensive, but they are becoming increasingly heavier.
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The supply of pigs in the Netherlands is still ample and the weights are high. In fact, the slaughter weight is even increasing to an average of 104 kilos in week 4. This means that the record has been further increased. Normally, the weights drop during the month of January, but that will take some time. It will take some time before the slaughter weight is back to normal proportions. However, the high weights are no longer a disruptive factor for the prices. Since this week, the weights have also stopped increasing, according to traders.
Germany slaughters few pigs
In the meantime, there is a bit more slaughtering. With 303.937 pigs, the slaughter figure last week was the highest since mid-December. Still, with this supply of pigs, you would expect more. Apparently, the will is not really there, although slaughterhouses are citing unwillingness from the NVWA, which is said to be unable to supply inspectors. There is also little slaughtering in Germany. With 664.593 pigs, almost 100.000 fewer animals were slaughtered last week than in the same week a year earlier.
Pork has become relatively cheaper
The depreciated pig prices, as a result of the outbreak of foot-and-mouth disease in Germany, make it theoretically more interesting for slaughterhouses to freeze meat. However, the real will to do so is still lacking, as can be heard in the corridors. There is apparently not much confidence in the market, which has to do without the support of major sporting events this year, which often gives consumption a boost. One advantage is that beef prices are on the rise, as is poultry meat. This may tempt cost-conscious consumers more often to pork.
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For the time being, the course on the pig market is sideways. The DCA Exchange price for slaughtered pigs remains the same in week six at €1,72 per kilo. The price of live pigs also changes unchanged at €1,35 per kilo.
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