Analysis Pigs & Pork
Chance of Christmas sprint passé, pig backlog ahead
If the pig price were to make one last Christmas sprint, it could happen next week. However, market conditions do not allow for that, although the demand for meat has noticeably increased.
Despite a growing meat demand, there is still a persistent oversupply of pigs. Even with more slaughtering in Northwest Europe, the supply is struggling to decrease. The high slaughter weights complicate this.
Van Rooi Decrease
Noteworthy is that Van Rooi Meat lowered the pig price by €0.02 this week to €1.70 per kilo. Technically, it is a decrease, but compared to other slaughterhouses, they are still priced 1 cent higher. The move emphasizes that higher pig prices in the last weeks of the year are no longer possible. The market in other parts of Europe is also moving sideways.
Pig Backlog Ahead
The question now arising is whether the supply in the coming weeks will put pressure on the market. The holidays fall in the middle of the week this year, which is very unfavorable. This situation creates a backlog of pigs in the market. In other years, this usually led to price corrections. This is a scenario to keep in mind. Combined with the high weights, the need to deliver pigs in advance in the coming weeks will likely be significant.
The DCA Beursprijs 2.0 remains unchanged at €1.89 per kilo for slaughtered pigs. The price of live pigs also remains unchanged at €1.48 per kilo.
