DCA BestPigletPrice meets surcharges

Due to the deteriorated sentiment on the pig market, given the red quotations in recent weeks, the piglet trade has weakened somewhat, but there is still a shortage. Symbolic of the piglet shortage is the German quotation, which was simply adjusted upwards by 1,50 euros to 52,50 euros this week, with a trend report for another increase of one euro in week 3. Piglet prices are also rising in Spain. although the Flemish piglet price did shrink somewhat, probably due to the pressure on the pig market.

There are rumors that piglet trading sometimes takes place considerably above the price level indicated by the quotations in mid-January. Surcharges that sometimes amount to 15 to 20 percent on top of the basic price are no exception. In Italy, for example, Dutch piglets are bought for around 65 euros and prices are also high in Eastern Europe. Such trade is facilitated by Vion and therefore Vion's piglet price also appears to be firmly at 52 euros per piglet. In the Netherlands, it is expected that there will continue to be a piglet shortage in the next 5 to 10 weeks. In Germany, expectations are more or less the same. Here, traders claim that the piglet market is building to a climax sometime in late February or early March.

It was expected that Vion's pig price would undergo a significant correction, given the direction the rest of Europe was choosing. Meat sales within Europe are at a low level. Necks, shoulders and hams in particular are hardly profitable, Vion said. The bacon market is also weak, with British demand in particular setting the tone. However, it does not look like this market will recover quickly, given that the value of the British pound still has a foot on the brakes. The correction of 5 cents was also made to create more room for maneuver on the global market. Why room was found to increase by 5 cents last week remains a mystery. Moreover, traders expect that both the Dutch and German pig markets will quickly head towards a new price floor.

Considering the surcharges are rising considerably and the pig market is unlikely to collapse, there is room on the piglet market for an increase. This is especially the case for traders who focus on the Dutch market. That is why the DCA increases BestPigletPrice by 1 euro to 51,00 euros per piglet. This is a new record.