Analysis Pigs

Pig prices finally takes a step up

June 15, 2024 - Wouter Baan

Despite the market still not feeling very convincing and stable, the DCA Market Price 2.0 is taking a step up. The tight pig supply has created some demand in the air.

The cold and wet weather conditions in Northwest Europe are not ideal for boosting market sentiment, but nevertheless, it is not lacking this week. Traders advocating for an increase have a kind of feeling of 'now or never.' There is a strong desire in the primary sector to raise prices to compensate for the high piglet costs that have been going on for months.

Significant rise in Internet market
The significant increase in the Internet market has given the final push to get the market moving. The benchmark of the German pig market rose by a whopping 9 cents today to €2.37 per kilo. If the price holds next Tuesday, the VEZG price will most likely also take a step next Wednesday. This would finally break the months-long stable trend.

It is not so much an increasing demand for meat, but mainly the tightening pig supply that is stimulating the market at the moment. Dutch slaughterhouses are in great need of pigs to be able to meet their slaughter plans. In the past week, about 270,000 pigs were slaughtered, and the number is likely to further decrease in the coming weeks.

Market price on the rise
Meanwhile, meat sales continue to disappoint. The mediocre summer weather is the main spoiler. This means that pig prices are likely to quickly reach a ceiling. Moreover, it is questionable whether slaughterhouses will follow the movement of the DCA Market Price 2.0. Nevertheless, traders often advocate for an increase. Based on the figures, the price for slaughtered pigs rises by 3 cents to €2.18 per kilo. The price of live pigs increases by 1 cent to €1.70 per kilo.

Click here for an explanation from DCA Market Intelligence on the price.

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.

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