DCA Stock Market Price Sucked Along on the Downward Path

The situation on the Spanish pig market is dire, despite the lucky break that the Chinese market narrowly remained open thanks to the regionalization agreement. China is by far the largest Spanish market outside the European Union and imported 40,8% of the 1,32 million tons that the southern European country sells outside the EU last year. The volume at that time was approximately 539.060 tons. The sixth-largest importer, the United Kingdom, has since lifted the export ban. It accounts for a total of 5% of exports, approximately 66.150 tons.

This means that more than half of exports to countries outside the European Union are still at risk. For example, there is no regionalization agreement for Japan (accounting for 14,5%, or 191.860 tons), the Philippines (14,1%, 186.300 tons), and South Korea (6,8%, 90.350 tons). These volumes are now being dumped on the European meat market by Spanish slaughterhouses. Eastern European buyers, in particular, are keen to find bargains. This makes the market challenging for Northern European slaughterhouses to maintain sales.

Plus on weekly allowance
Pig prices in Europe have shown little consistency. Spain is logically leading the way in price reductions and has already reduced prices by 20 cents. Germany, despite everything, held its ground. Dutch slaughterhouses nevertheless believe that reductions are in line with market conditions. Market leader Vion implemented the largest reduction, at 8 cents. However, 2 cents of this reduction was offset by the increased weekly surcharge, according to the report, to ensure the difference with other slaughterhouses did not become too large. 

DCA Benchmark Price - Pigs
Based on the data, the DCA Exchange Price 2.0 for slaughtered pigs falls by €0,06 to €1,44 per kilo. The price for live pigs drops by €0,04 to €1,11 per kilo. 

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