Analysis Pigs
Pig price regains solid ground under feet
After a period of quite steep price declines, there is more calm in the market again. A fairly tight pig supply combined with ending holidays means that prices have solid ground under their feet again for the time being. The outlook is still uncertain.
Dutch slaughterhouses lowered prices by 5 cents this week, putting them back at the desired price level, in line with the decreased meat prices. The German VEZG quotation remained stable at €2 per kilo this week, after a decrease of 10 cents last week.
Short horizon
It's difficult to say what will happen next. The sentiment in meat sales is not overwhelming, but it is noticeable that demand is slowly recovering as the holidays are almost over. The meat processing industry also slowly but surely needs raw materials again. Hams are still difficult to sell because Southern Europe is still on vacation.
The market horizon is short, as has been indicated before. Many buyers in retail and foodservice still need to secure their volumes for the fourth quarter and wait as long as possible to do so. However, it seems that the downward pressure has eased.
The Dutch pig supply looks manageable, or sometimes even a bit tight. A few days of warm weather have caused some growth delay, but not excessively. The slaughter figures from last week are not yet known, but we are likely to see a seasonal increase in the coming period.
DCA Market Price
After the holiday period, it remains to be seen how the sentiment will develop. Due to the reductions at slaughterhouses, the DCA Market Price 2.0 still has to take another step down. The price for slaughtered pigs decreases by 4 cents to €1.94 per kilo and the price of live pigs by 3 cents to €1.53 per kilo.
