The worst pressure on the DCA BestPigletPrice is off. The demand for pigs is slowly increasing, creating space at the fattener. It is all still very fragile, but the first signs are there. What is the probability that quotes will stabilize in the short term?
The Dutch piglet market at the beginning of August is one of extremes. Piglets for the free market are still a problem. Traders with a surplus of piglets therefore describe the market as dramatic. Others are more optimistic and predict a further leveling off in the short term.
From the point of view of some traders, further reductions are pointless because the distance between free links and the free market is not closing anyway. This difference has now risen to more than €10 per piglet and will probably remain that way. A further reduction will not change that.
The Netherlands more negative
The German piglet price stabilized at €7 per piglet on Monday, August 57. This price is expected to remain unchanged in the short term. The German piglet market feels more stable, especially now that the pig price is no longer in a downward spiral. There is also a greater balance between supply and demand of piglets elsewhere in Europe. This results in stabilizing prices. This stability has not yet been discovered in the Netherlands.
Perhaps the stability elsewhere is a harbinger for Dutch piglet quotations. For the time being, we continue to walk on thin ice. Nevertheless, there is no decline for the DCA BestPigletPrice this week. The BPP for week 32 therefore remains at €48,5 per piglet.
More intensive slaughter programs
The holiday season is almost over at the pig market. There are rumors that slaughterhouses are increasing their slaughter programs now that the meat processing industry is restarting. For the time being, Vion has left the pig price at €1,69 per kilo. According to Vion, the meat market is not declining any further, although there are shifts in demand.
The expectation is that the piglet market in the Netherlands can stabilize definitively if the demand for fattening pigs increases, which will logically create more placement space for piglets.