Inside: Pigs & Feed
Psychological frontier in sight for DCA BestPigletPrice
The balance on the European piglet market is still a long way off. The expectation for flattening piglet prices has been announced for weeks, but each time the supply is too tight to meet a good demand. For week 14, the DCA BestPigletPrice is again increasing. The psychological limit of 60 euros per piglet is now within 'hand reach'.
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Throughout Europe, the piglet market is determined by shortages. Last week, the North/West Commission announced a leveling off piglet price with a sideways trend report. However, the market cannot be stopped and rose again by one euro to 3 euros per piglet on Monday afternoon, April 2017, 61.
Last week a similar movement took place in Germany. Even then the trend report was ignored. In order not to further damage credibility, the North/West Commission has now forecast an increase.
54,50
euro
The Flemish piglet price also rose on Thursday, for the second week in a row, by one euro to 48 euros per piglet. In Spain, green numbers can also be read from the signs. The Spanish quote for a 20 kilo piglet increased by one euro to 54,50 euros in the last week of March.
Tightness does not harm exports
The export figures for Dutch piglets are holding up well in 2017. This is despite the fact that the Dutch piglet market has been plagued by extreme shortages since November. In the first 2 months of this year, 977.352 piglets crossed the Dutch border. That is almost 20.000 animals more than the same period in 2016. Germany attracts almost 70 percent of the volume. The rest mainly goes to Belgium, Poland, Italy, Hungary, Romania and Spain.
Pig price Vion up
For only 2 weeks, Vion's pig price was within the zone: 1,60 – 1,70 euros per kilo. On Monday afternoon, the slaughterhouse announced that it would increase the pork price by no less than 7 cents to 1,73 euros per kilo.
This increase clearly reflects a tight supply and the urgency to get enough pigs on the hooks in the last full week before Easter. Within Europe, the meat market moves at a similar pace to pig prices. However, European slaughterhouses are pricing themselves out of the market on the world market. This is Vion's comment, referring to the rapidly rising pig prices in Europe.
60 euros is in sight
Over the past two weeks, increases for the DCA BestPigletPrice (BPP) have been limited to 0,50 euros. Because the German piglet price has been falling for a few weeks, the BPP is now also adding a euro. This brings the quotation to 58 euros per piglet.