Sentiment in pig market feels somewhat subdued

The pig market is back on its feet, but that's about all that can be said. The sentiment in the market is not overwhelming. The pig supply in Northwest Europe is quite ample, and it is noticeable in the meat market that more slaughtering has been taking place recently. Whether the Christmas demand will provide a boost this year remains to be seen.

Now that pig prices have dropped to the lowest level in two years, there is no longer any acute pressure. However, price pressure remains latent. This is because the pig supply continues to be ample. This is particularly noticeable in Germany following the loss of two slaughter days in October. Traders in the Netherlands are generally keeping up with deliveries. It will help that more slaughtering will also take place on Saturdays in the coming weeks. The number of pigs slaughtered in the Netherlands in recent weeks is unknown. The RVO is behind in publishing the data.

Spain
In the meat market, the supply has quietly increased in recent weeks. Especially non-boned parts are being offered frequently. Slaughterhouses apparently have the capacity to slaughter but not to bone. This keeps the pressure on the prices of the parts. It does not help meat sellers that the pressure on the Spanish pig price continues, although the decline seems to be slowing down. Spanish meat companies were already competitive and are also active in Northwest Europe. Historically, the decline stops from mid-November, followed by a period of stability.

Whether the demand for (pig) meat will pick up towards Christmas is the question on the market. The coming weeks will be make or break. It is currently difficult to assess whether the demand will increase. There are also ample frozen stocks that can accommodate additional demand.

DCA Market Price
Overall, a stable pig price fits the current market situation. Traders are not inclined to stimulate through an increase. The DCA Market Price 2.0 remains unchanged at €1.89 per kilogram for slaughtered pigs. The price of live pigs remains at €1.48 per kilogram.

Wouter Baan

Wouter Baan is the editor-in-chief of Farmerbusiness and a market specialist in dairy, pork, and meat at DCA Market Intelligence. He also tracks developments within the agribusiness sector and conducts interviews with CEOs and policymakers.

w.baan@farmerbusiness.com