Pig Prices Finally Increase – Pig Market Analysis
The DCA Market Price has taken a step up, despite the market still not feeling very convincing and stable. The tight supply of pigs has created some demand in the air. The cold and wet weather conditions in Northwest Europe are not ideal for boosting market sentiment, but there is no shortage of it this week. Traders advocating for an increase feel a sense of urgency: ‘now or never’. The desire to raise prices is strong in the primary sector to offset the high piglet costs that have been persisting for months.
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 as much as 9 cents to €2.37 per kilo today. If the price holds next Tuesday, the VEZG price is very likely to make a move next Wednesday. This would finally break the months-long stable trend.
It’s not so much an increase in meat demand, but rather the tightening pig supply that is stimulating the market at the moment. Dutch slaughterhouses are in great need of pigs to fulfill their slaughter plans. In the past week, about 270,000 pigs were slaughtered, and the number is likely to decrease further in the coming weeks.
Meanwhile, meat sales continue to disappoint. The mediocre summer weather is the main culprit. This means that pig prices are likely to hit a ceiling soon. It remains to be seen whether slaughterhouses will follow the movement of the DCA Market Price 2.0. However, traders often advocate for an increase. Based on the figures, the price for slaughtered pigs is set to increase by 3 cents to €2.18 per kilo. The price of live pigs will rise by 1 cent to €1.70 per kilo.
Overall, the pig market is showing signs of improvement, with prices on the rise and demand picking up. This positive trend is a welcome change for farmers and traders who have been grappling with high costs and uncertain market conditions. As we head into the coming weeks, it will be interesting to see how the market continues to evolve and whether this upward momentum can be sustained. Stay tuned for more updates on the pig market trends and developments.
