Analysis Pigs
Will pig prices rise now or not for the time being?
An increase in the price of pigs has been in the air for weeks, but for the time being the market is still going along unchanged. Although there are not too many pigs, the supply is still sufficient to meet the demand for meat. However, there are signs that the market will soon tend upwards, although not everyone is convinced of this.
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There was a lot of waiting on Wednesday to see what the German pig price would do, but in the end the VEZG quotation continued to move sideways at €2 per kilo. There is also no movement in the slaughterhouse quotations in the Netherlands. The stable pig prices are received with disappointment by producers and traders, because there is an emotional feeling that there is quite some appetite in the market. Pigs ready for slaughter are quickly taken up from week to week.
Mixed signals
There are mixed signals regarding the demand for pork. According to some, sales are fine, without it being a rush. According to other parties, things are more difficult in the meat trade, especially in the sale of hams. The meat processing industry is also said to be cautious. Demand may possibly increase (further) when temperatures rise and the weather improves in Southern Europe. Seasonally, consumption has not yet reached its peak.
Loss of slaughter days
The fact is that two slaughter days (Ascension Day and Pentecost) will be cancelled in Europe in the coming four weeks. This will camouflage the seasonally tighter supply of pigs. All in all, a cloudy picture emerges when you zoom in on the market situation. Some people are talking about a possible (significant) increase in the German pig price next week, but not everyone is expecting this to happen. In other words: it could freeze or it could thaw.
The divergent view is also reflected in the DCA Beursprijs 2.0 statements, which are already pre-sorted for higher pig prices due to the increase two weeks ago. The price of slaughtered pigs remains at €2,03 per kilo, while the price of live pigs continues to move at €1,59.
Click here for an explanation from DCA Market Intelligence on the listing.