Confidence in pig market translates into piglet price

The piglet market is still dominated by a tight supply at high prices. Some criticism has been expressed from abroad, especially Spain, about the high piglet prices in northwestern Europe. The available supply is still being gobbled up by the Spaniards. However, the point at which the piglets actually price themselves out of the market has come closer due to the recent price increases. However, the question is whether the Netherlands and Germany should feel addressed by the Spanish sales talk. Because, also in the rest of Europe, including Spain, piglet prices are strongly valued with parallel price movements.

The market is hearing that pig farmers are going to great lengths to postpone the moment of purchase. By keeping fattening pigs for longer and therefore delivering heavier weight, an attempt is made to compensate for the high piglet price with extra kilos of slaughter weight. It is also sometimes decided to stock fewer piglets and in some cases even leave departments empty. When the pig price showed little sign of rising in mid-February, such postponement strategies were frequently applied under the guise of: 'I just have to see it all happen'. Now that pig prices are actually higher, confidence among fattening pig farmers is noticeably increasing. This means that the stables have to be filled again immediately after delivery, which has caused another run on the open market.

Following the DCA Stock Exchange Price 2.0, Vion's pig price for week 11 also increased by 2 cents to 1,59 euros per kilo. According to the meat company, the room for this increase can be achieved through an improvement in the meat market. Dutch slaughterhouses say that Tönnies' mood-making may temporarily slow down the market, but that on balance the positive circumstances prevail. Tönnies' sales problems should not be a reason for others to completely close down the pig market. It is still unclear which direction the German pig market will take on Wednesday. Opinions are still divided on this.

Due to the urge to increase in Germany, given the price increase in week 10 by one euro to 58 euros and the same trend report for week 11, the DCA BestPigletPrice is also joining in. Just like last week, the increase is 50 cents, bringing the GDP to 55,50 euros per piglet.