Inside: Pigs & Feed
DCA BestPigletPrice takes it up a notch
A rapid price increase since November, a short stopover in February and prices picking up again in March, that is the picture that the piglet market has shown over the past few months. The price peak is the result of a long-term shortage of piglets, combined with confidence in the pig market.
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In mid-March there are more piglets in circulation (in absolute numbers), but this does not yet result in a balance between supply and demand on the market. There are still shortages on the market, especially because the shortages in the recent period have led to significant delivery backlogs. The available supply is therefore eagerly gobbled up and imposed. Even though supply is less tight than at the beginning of January, the piglet market needs time to regain balance. The idea is that it could last at least until mid-April.
The fact that the piglet supply has been excessively tight in the past period and is still tight in mid-March is confirmed by almost all parties. This is despite the fact that several fattening pig farmers are retaining the pigs, which has caused some delays on the demand side of the piglet market. The increasing weights in recent weeks confirm this. However, more piglets and a slowdown in demand here and there have not yet achieved a balance and so the quotations are still looking upwards.
The German piglet price will increase again by one euro in week 10, bringing it to 59 euros. Whether the limit of 60 euros per piglet will be reached next week (in week 11) is not exactly in line with expectations. This is based on the trend message that indicates a sideways movement. Piglet prices have also started to rise again in Belgium and Spain.
Vion's pig price for week 12 is up 2 cents to 1,61 euros. The slaughterhouse says that an improvement in the meat market will free up space for pork prices, with hams and foreparts in particular being sold at better prices. Exports to China, on the other hand, are proceeding less smoothly. Competition from other countries is fierce and there is more domestic production available in China. This means that the prices of by-products do not increase along with the components for the European meat market.
After two previous increases of 50 cents in week 10 and week 11, the DCA BestPigletPrice for week 12 increases by 1 euro to 56,50 euros per piglet.
