Analysis Pigs
Showers above pig parket with sunny weather ahead
Many things are relative in life, including the peace that seemed to have emerged on the troubled European pig market. Despite the fairly tight supply, pressure on prices is starting to increase again, although the DCA Market Price is not yet anticipating this.
The pig market does not seem to be granted a moment to catch its breath during these holiday weeks, as price pressure is reemerging. Slaughterhouses are creating a stir to lower purchase prices. And there is certainly some truth to this, given that meat prices are under pressure. Last Monday, we already saw this reflected in the meat mutations of DCA, where heavyweights such as hams, the middle section, and necks went down. Based on the mutations, the pig price theoretically should decrease between 2 and 3 cents.
Seeing the storm coming
However, this did not happen last Wednesday. Both the German VEZG quotation and the Dutch slaughterhouse quotations remained unchanged. The quotations also remained unchanged in Belgium and Spain. The German Internet exchange did drop slightly on Friday, as did the sow quotation of Danish Crown in Denmark. Nevertheless, the calm week seems to be a prelude to a more turbulent week ahead. Signals are coming from various market sectors that prices could (significantly) decrease. Traders also sometimes see the storm coming.
Summer weather approaching
It is finally a week with beautiful summer weather ahead. This is of course great for many people during the construction holiday, but it also benefits the fluctuating pig market. It can give a boost to meat sales. It should be noted that retailers have good stocks, providing them with a buffer. Additionally, it should not be forgotten that many Dutch people are currently abroad, which also leads to a decrease in demand. The support from the weather is therefore relative.
Slaughtering
The pig supply is not excessively abundant, as heard from the market. But from the perspective of unambitious slaughter plans due to vacation schedules, there is certainly no shortage. In Germany, the slaughter figure fell below 700,000 last week. However, in recent weeks, more pigs have been slaughtered than last year. The Dutch slaughter figures from last week have not been published yet.
DCA Market Price
Whether the soup will be as hot as some market parties are serving it will be revealed next week. Based on the submissions, the DCA Market Price remains unchanged. The price for slaughtered pigs remains at €2.06 and the price of live pigs at €1.62 per kilogram.
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