Analysis Pigs
Which direction will the pig market take?
Will the German pig price still go down next week, or will the Dutch slaughterhouses that lowered prices last Wednesday correct them back up? That is the burning question currently occupying the market.
As we previously wrote, it's an exciting market that doesn't lead to clear price movements. The question now is whether the prices will converge again and who will take action. The situation can go either way: upward corrections or downward corrections. Of course, the current situation could also continue, but it is expected that the imbalance will be resolved next week.
Without wanting to be pessimistic, downward corrections seem to be a more likely scenario, meaning that the VEZG price will drop by about five cents. Some German contributors already indicated this direction for this week, but it did not prevail. It is also unlikely that Vion will take the initiative on Monday and reverse the trend upward.
Supply not large, but little demand
Looking at the Dutch market, the supply is not so large that slaughterhouses can draw from a wide range of pigs. On the other hand, the willingness to slaughter is not so high during this holiday period. Meat sales are weak, and the processing industry is not in great need of raw materials. There are plenty of pigs in Germany.
Given the circumstances, it is not surprising that the submissions for the DCA Market Price vary widely, from unchanged to a five-cent decrease. The average indicates a decrease of €0.03, bringing the price for slaughtered pigs back to €2.03 per kilogram. The price of live pigs drops by €0.02 to €1.60 per kilogram.
