The pressure of an increasing number of free flocks on the piglet market is taking on more serious forms. What does this mean for the DCA BestPigletPrice?
In Germany, the important export market for Dutch piglets, the piglet price remained at 63 euros last week. This price has also been communicated as a trend for this week. Despite the unchanged prices, the mood on the German piglet market is changing. There are sounds that fattening pig farmers are becoming more reluctant to impose. The increasing uncertainty as to whether record high piglet costs will pay off in October is the argument for the increasing resistance.
The German piglet market is still largely in balance, but this could quickly tilt towards a (slight) oversupply. When the increasing reluctance in Germany takes more serious forms, this will certainly become noticeable in the Netherlands. Demand from Spain and Italy is described as 'tame' and 'slow'. This means that the German sales market has become even more important.
Free piglets make their mark on the market
In the Netherlands, traders are increasingly noticing the consequences of the stopper scheme. This arrangement reduces the number of animal places in the stables. The piglet shortage this spring camouflaged the consequences of this arrangement for weeks, but that is now over.
The pressure on the free market also has an impact on trade within fixed links. Fattening pig farmers are regularly offered 'cheaper' free piglets, it is reported. As a result, sell-out stories are circulating, with the result that the willingness to pay within fixed connections decreases.
Vion's piglet price is illustrative, which fell by 2 euros last week to 61,50 euros. The DCA BestPigletPrice will also decrease in price by 2 euros in 2 weeks. Just like last week, the price drops by one euro, bringing the BPP to 25 euros per piglet in week 57.
Vion pig price unchanged
The tight pig supply is not able to push up Vion's pig price. According to Vion, the tight supply only has a supporting effect. The price remains stuck at 1,82 euros. It is the difficult sales opportunities on the meat market that block the path to higher pork prices. The price of the front part is declining, while there are fewer buyers who purchase hams. In the south of Europe, the hams still have some wear and tear, although resistance is increasing there too.
Vion therefore sees no opportunity to follow the DCA Stock Exchange Price, which rose by 2 cents to 1,76 euros on Friday. If the German pig price rises on Wednesday, June 21, maintaining unchanged prices will probably become more difficult. Traders report that slaughterhouses have difficulty filling the hooks. Pigs presented today (June 19) are still being accepted quickly.