Analysis Pigs & Pork
Stable pig market can still go in any direction
The pig market is going through a dull period. There are few ingredients present in the market that could cause a movement upwards or downwards. As a result, the DCA Market Price continues to move sideways.
The German pig price (VEZG) has been at the same level of €1.92 per kilogram for four weeks in a row. A similar price pattern can also be observed in the Netherlands and surrounding countries. Sideways price movements at this time of the year are not uncommon. In 2023, the stable trend continued into the new year. In the two previous years, it led to a strengthening market towards Christmas twice. In 2020, a contrary trend was visible as the market declined in the last weeks of the year.
Market still open
This year, all three options are still possible. It is difficult to predict the market direction. Supermarket buyers sometimes try to talk down the market. On the other hand, the pig supply in Europe is currently not excessive, as well as the frozen stocks. Positive is that the Spanish pig price has stopped declining after a long period. The pressure on the meat prices has also eased in recent weeks, leading to overall stability. Many meat buyers are short covered and aiming for cheaper prices on the spot market in the run-up to Christmas. However, if the market does pick up, it could potentially cause some 'panic' among buyers.
Weights increasing
In the Netherlands, the supply of live pigs is balanced with the demand, with the note that relatively few are being slaughtered. The slaughter figure last week was at its lowest level since 2013, due to the lower number of animals in our country. However, the average slaughter weight is increasing and is back above the 100-kilogram mark. In theory, pig farmers can easily deliver in advance if they do not trust the market. In Germany, the supply is slightly larger than ours, still due to the disrupted slaughter weeks in October.
DCA Beurpsrijs
Overall, the market is balanced and there doesn't seem to be an immediate change in the short term. The DCA Beursprijs 2.0 remains unchanged at €1.89 per kilogram for slaughtered pigs. The price of live pigs remains at €1.48 per kilogram.
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