False alarm at Dutch pig market

With that happened There was still something unexpected on the otherwise calm-looking pig market. Vion's reduction also came as a bit of a surprise, as the market hadn't deteriorated much further in recent weeks. This is also evident from the flesh mutations of DCA which have been moving stably for several weeks in a row. 

Other slaughterhouses maintained their prices without much complaint on Wednesday, and everything in Germany also remained unchanged. This was likely Vion's cue to change its mind. The commentary later claimed the reduction had been miscommunicated.

Supply limited, as are the slaughter schedules
Anyway, back to the agenda. Supply on the Dutch pig market is limited. However, the market is balanced, as fewer pigs are being slaughtered than usual. From week to week, just over 250.000 pigs are being slaughtered, leaving some capacity unused. Slaughterhouses are happy with this, which is partly due to the meat processing industry's slower pace during the holiday season. Especially in Southern Europe, there's little demand for raw materials like hams, a heavyweight in the carcass.

A theoretically unfavorable development for pork is that beef prices (and to a lesser extent poultry) are under pressure. On the other hand, this did not benefit from the sharp rise in prices this spring, as pork, as is well known, could not keep pace.

DCA Benchmark Price - Pigs
In short, stability remains the order of the day for the pig market in Northwest Europe. In Southern Europe, there is some pressure on the Spanish pig price. Based on the data, the DCA Exchange Price 2.0 has moved sideways for the fourth consecutive week at €1,93 per kilo for slaughtered pigs. The price of live pigs is stable at €1,50 per kilo. Pricing will remain stable for the coming weeks, after which demand is expected to return. 

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