Analysis Pigs
Pig market sees bottom become stronger
Now that calm has returned to the pig market, the mood is gradually becoming more friendly. Supply in the Netherlands is being absorbed quickly as the dark months are about to begin.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
The clocks change this weekend, and that usually doesn't bode well for pork consumption in Europe. Consumption is generally higher in the autumn and winter months than in (late) summer. However, for the time being, this isn't a reason to believe the market can reach higher levels.
Stability is currently the highest achievable target for pig prices in Northwest Europe. Despite the price drop in recent weeks, slaughterhouses remain critical of their margins. This is partly due to the difficult sales of by-products on the global market and tariffs in China.
No loss of slaughter day
Dutch slaughterhouses process between 270.000 and 280.000 pigs per week. Considering the closure scheme, which has largely already been implemented, these are quite substantial numbers. Part of the decline is being offset by a structurally lower export of live pigs to Germany.
This decline is barely noticeable on the German domestic market, where supply is relatively plentiful. Slaughterhouses therefore intend to increase their slaughter volumes slightly in the coming weeks. Because All Saints' Day (November 1st) falls on a weekend this year, this won't disrupt the slaughtering week by disrupting the schedule. This is a welcome outcome for ensuring stability.
DCA Benchmark Price - Pigs
All in all, a stable movement best suits the current market picture. Consequently, the DCA Exchange Price 2.0 continues to fluctuate sideways at €1,62 per kilo for slaughtered pigs, while the price of live pigs remains unchanged at €1,25.
Click here for an explanation from DCA Market Intelligence on the listing.