DCA BestPigletPrice is settling down, it's the pig market's turn

It took the DCA BestPigletPrice 15 weeks to increase from 40,50 euros to 54,50 euros per piglet. In recent weeks, many people have been surprised by the rapid rise that the piglet market has made. On balance, the DCA BestPigletPrice has increased by 34,5 percent since November. Other piglet prices in the Netherlands and abroad have achieved more or less the same increases. In other years too, the piglet price often rises during the winter period, but historically the room for increases is usually limited to between 6 and 8 euros.

Since the beginning of February, various players on the Dutch market have seen the supply of piglets increase slightly. The expectation is that the gap between supply and demand will narrow in the coming weeks and that the piglet market will become more balanced sometime in March. However, signals that point to actual equilibrium are not yet visible. This means that despite a narrowing gap, the piglet market can continue to seize every opportunity to rise.    

An opportunity for even higher piglet prices could be a rising pig market. In week 8, stable pig prices will provide resistance on the piglet market, but if the European pig market manages to pick up the upward trend in the coming weeks, the piglet market may be able to take another step. However, it is difficult to put a finger on this scenario, as the pig market is influenced by all kinds of factors, such as currency exchange rates and sales opportunities in Asia. Such factors are generally difficult to predict.

The current market situation can be compared well with the year 2012. Back then, the German piglet price was well above 50 euros in February, with pig prices at around the same level as now. Ultimately, the piglet price slid to 42 euros towards the summer and the German pig price continued to rise to a peak of 1,93 euros per kilo in September. Historically speaking, interesting possibilities arise. Vion's pig price for week 8 remains unchanged at 1,55 euros per kilo. According to Vion, all meat parts, with the exception of the shoulders, can be disposed of profitably. This means that the pig market can respond quickly when the meat market improves. The parts therefore do not have to make up for any damage when the meat market picks up.

Despite the fact that the shortage - in theory - may still lead to an increase, the DCA BestPigletPrice remains unchanged this week at 54,50 euros per piglet. This is so as not to impose even greater 'obligations' on the pig market in four months' time. Several parties comment in their comments, with the above reason in mind, that it is actually irresponsible to rise even further. The pig market is now the first to move, or so the thinking goes.