Analysis Pigs
Pig price held back by 'German' supply that remains here
The good demand for pigs combined with a well-running meat sales is causing pig prices to continue to rise. The hunger for higher pig prices from the primary sector is far from satisfied, although slaughterhouses sometimes try to slow down. Nevertheless, the reduction in the DCA stock market price is moderate because pigs destined for Germany are still...
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Increasing pig prices is precision work. Slaughterhouses in our country try to follow the market, but do not want to be ahead of the pack with their pricing. The result is that quotations are sometimes published later than usual. In addition, surcharges are played with to increase the payout prices. fine tune. Meanwhile, the German VEZG listing continues to float unchanged until the end of March. Presumably, there will be a catch-up after that, especially now that Germany has been declared free of foot-and-mouth disease and can therefore enter the world market in the long term. However, this will probably only be possible ninety days after the first outbreak on 10 January.
More massacres in Germany
Meanwhile, the pig supply in the Netherlands continues to decline, as do the weights. Unfortunately, this cannot be substantiated by slaughter figures, as these have not yet been updated by RVO. German slaughterhouses are increasingly keen to slaughter. With 735.324 pigs, the slaughter figure last week exceeded last year's level for the first time this year.
Meat market becomes a demand market
The rising German slaughter figure confirms the better running meat sales. Buyers of meat are increasingly realising that the market could become more dominated by shortages and are therefore increasingly keen to conclude long-term contracts. This is something that slaughterhouses are particularly wary of, because they do not want to lock themselves into the rising market.
DCA Benchmark Price - Pigs
The Dutch pig trade continues to push for higher pig prices, despite the fact that slaughterhouses do not always follow the movements wholeheartedly and sometimes try to slow down by not increasing further. Based on the data, the DCA Exchange price for slaughtered pigs increases by €0,01 to €1,83 per kilo. The price of live pigs remains unchanged at €1,42 per kilo. The moderate increase is partly due to the fact that thousands of pigs will remain in the Netherlands next week, which were actually supposed to be exported to Germany. The lagging German pig price is the cause of this, but this is expected to be temporary and upward corrections will follow in April.
Click here for an explanation from DCA Market Intelligence on the listing.