Inside: Pig Market
Piglet market is deteriorating rapidly
This spring's well-oiled piglet market has turned into a faltering machine. Trading is squeaking and cracking and slowing down by the week. The DCA BestPigletPrice is therefore considerably reduced in price.
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The piglet trade in the Netherlands is difficult to establish. The supply is simply too large compared to demand. The extreme heat around the longest day has caused growth retardation in fattening pigs. Fattening pig farmers therefore impose more moderate amounts at the beginning of July. With stable pig prices and falling piglet prices, fattening pig farmers have little problem waiting for market developments.
- 1,50
euro
DCA BestPigletPrice down
The effects of this are clearly noticeable on the piglet market at the beginning of July. The placement space is shrinking, it is learned. Flocks of piglets that are left over for export often make heavy losses. The allowances incurred this spring are now playing a role. Propagators often cling to the allowances incurred. For many traders, the piglet market has turned out to be a challenging scene.
The DCA BestPigletPrica will therefore drop in price by €1,50 to €55 per piglet. This reduction is wider than the previous price corrections. A signal that the situation on the piglet market is deteriorating.
What will the pig market do?
The crucial question is which traits the pig market will exhibit. The DCA Exchange Prize 2.0 already had one on Friday price correction and there is a chance that the German pig price will also fall on Wednesday. Vion is also threatening to lower pork prices if the meat market does not improve quickly. With unchanged tight supply, the price remained at €1,82 per kilo this week. Due to the mix of long-term contracts and weekly trading, the margin remained somewhat intact, the slaughterhouse says.
If the pig market actually declines, more supply will probably become available. A first reduction is often accompanied by a second. In such a scenario there will probably be more placement space for piglets. The only question is whether this will be enough to prop up the declining piglet market. There is currently a lack of positive starting points to stop the negative trend in piglet country.
Prognosis
The forecast is therefore that piglet prices in the coming weeks will move further away from the record levels of this spring.