Pig market continues to feel unstable

The uncertainty in the pig market continues to escalate, despite the fact that many pig prices finally or temporarily found a bottom this week. How strong that bottom is will become clear next week. The DCA Beursprijs 2.0 is not anticipating further reductions in any case. The contrast in the pig market was significant this week: While Vion lowered their prices again, the other slaughterhouses kept the quotes unchanged for the first time in a few weeks. The only argument Vion can raise is that they are hit hardest by the Chinese tariffs, which ultimately led to the price crash. Nevertheless, the reduction has led to angry reactions from the primary sector and trade. Abundant German supply The German quotation also remained unchanged, which can be seen as a positive development. However, expectations are that Germany will also decrease next week. The pig supply was already large, and this has not diminished due to the loss of a slaughter day. Relatively many slaughter sows are being offered. It will become clear next week whether the pig market can stabilize or not. It seems to be a toss-up. With a large supply, the meat market is currently providing few impulses. Buyers are hesitating to secure volumes in light of further reductions. With the ample supply in Germany, Denmark, and Spain, there is no reason to think that component prices will rise quickly. Division in trade There is significant division among traders regarding the direction of the DCA Beursprijs 2.0. The call to anticipate a further reduction next week with the expected price is becoming louder, but the desire to stabilize weighs heavier. Despite the differing statements, the quotation for slaughtered pigs remains stable at €1.72 per kilo and the price of live pigs at €1.33 per kilo. Click here for an explanation from DCA Market Intelligence on the quotation.