Inside: Pig Market
DCA BestPigletPrice falls back to breaking point
After last week's sharp drop, the pressure on the DCA BestPigletPrice has not abated. Fattening pig farmers react hesitantly, so that the price pressure cannot dissipate.
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The German piglet price responded to the announced trend report on Monday 24 July by falling by €2 to €59 per piglet. The German piglet price has decreased in supplements during May and June and now it is also the turn of the basic price. The trend report for this week has been re-established at $2. The sharp price decreases in Germany, €4 per piglet in 3 weeks, crank up further price decreases in the Netherlands.
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A lot of export to Germany
In the last full week of June (week 25), the Netherlands exported 101.061 piglets to Germany. Such high export figures are quite unusual and have not occurred in the past 1,5 years. Despite the fact that many traders report that exports have been difficult since May, this is not immediately reflected in the figures. Roughly between 120.000 and 140.000 piglets are exported weekly. It is true that in the export to Poland a handful of trucks are lagging behind last year. This explains the pressure on the free market.
These weeks the piglet market is still being supported by the fact that the July lay-up will be on the market in November as a finisher. Traditionally, pig prices rise because of Christmas. Nevertheless, the demand is very limited. Fattening pig farmers are waiting and alluding to further price falls. The sluggish piglet market is therefore mainly created by lackluster demand. In exact numbers, the offer is certainly not excessive.
The situation outlined explains the pressure on the DCA BestPigletPrice. The January lay-up will probably complicate the piglet market even more. August is usually a red month in the piglet market. In the last full week of July, the BestPigletPrice is reduced by €1 to €50 per piglet. The quotation is expected to fall further, although resistance is also being experienced at the €50 per piglet limit.
Striking hole
Traders report that the gap between the free links and the free market has widened. This is despite the fact that the quotations are adjusted downwards. Price differences, of €20 between fixed links and the free market, would even be historically large.
Vion pig price stabilises
After 2 significant price reductions in a row, Vion's pig price has stabilized at €1,69 per kilo. According to Vion, the quotations on the meat market are not falling any further and the pig supply is in line with demand.