The pig market is currently experiencing relatively unsettled price movements. After a period of unrest at the beginning of autumn, stability is now the order of the day. It is striking, however, that slaughter numbers in the Netherlands are declining against the seasonal trend.
In August and September, the Dutch slaughter figure was relatively close to last year's numbers. Since the beginning of October, we have seen the slaughter figure decline, as have average slaughter weights. This clearly bucks the seasonal trend. This development cannot be seen in isolation from the closure scheme in the Netherlands. It is possible that slaughter numbers will decline further in the coming weeks, once all farms participating in the Lbv scheme have effectively run out of meat.
Easier to place
This development makes the pigs easy to place, something we also wrote a few weeks ago. This is more a case of supply shortages than meat sales demand. Despite a slight improvement in sales, this has not yet led to higher prices. This is also evident from the DCA parts prices which have remained the same this week.
In addition to the shrinking pig supply in the Netherlands, the European picture must be carefully considered. Due to increased animal numbers in Spain and Denmark, the overall supply is relatively ample. Germany is slaughtering stable numbers from week to week compared to last year.
For now, the market appears to be continuing its steady course. Whether there's a slight uptick ahead of the Christmas holidays remains to be seen. In that case, the meat market should at least revive, and the still relatively strong euro isn't helping matters.
DCA Benchmark Price - Pigs
Based on the data, the DCA Exchange Price 2.0 remains unchanged for the fourth week at €1,62 per kilo for slaughtered pigs. The live price continues to move sideways at €1,25 per kilo.
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