Inside: Pig Market
Situation on the piglet market has not deteriorated
Now that the piglet trade is getting better in balance, the pig market is starting to disrupt again. Will this again unbalance the piglet market and what does this do to the DCA BestPigletPrice (BPP)? There are interesting differences per region.
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The supply of piglets in Northwestern Europe decreases seasonally and this is noticeable in the trade. Despite the fact that the pig market is in the middle of a second autumn storm, Dutch fattening pig farmers are not waiting to stock up on new piglets. Within fixed links, trading continues reasonably well. With regard to free piglets, the market situation varies per trader and region.
Despite the fact that the pig market has lost around €0,25 per kilo since the summer, casual fatteners do not necessarily view the market negatively. Compared to last week, the piglet market in the Netherlands has certainly not deteriorated. Traders say they have no piglets left.
37
euro
Reduction expected in Germany
In Germany, the market situation has deteriorated due to falling pig prices. This is probably also because there is less flow, because most of Germany has 2 days off. Dutch exporters notice this in sales. The trend report, which for this week ranges from unchanged to minus €3, the North/West piglet price reflects the deteriorated market situation. For the time being, a reduction of €2,50 per piglet is expected. Last week the quotation remained the same at €46 per piglet. This means that for some the reduction is being implemented a week too late.
However, for many Dutch traders this is no reason to lower the BPP, which means the quotation remains at €37 per piglet. After all, the difference with Germany is big enough, or so the argument goes. On balance, Dutch traders have few problems in their own country and the pressure is mainly in Germany. When the broken weeks are over, it is expected that the piglet market in Northwest Europe will definitely turn around.
Vion down with it
The situation on the pig market is experienced as a bitter and unnecessary pill to swallow. However, the quotations are reality, because Vion is also reducing the pig price by €0,05 to €1,45 per kilo. The slaughterhouse has been talking for weeks about a continued ample supply, which puts the necessary pressure on the meat market, especially on hams and shoulders. There is also price pressure on by-products in China.