German piglet market is heading for red weeks

The German pig sector can prepare for a week of red listings. Both pig and piglet prices are under considerable pressure. In the past week, the North/West piglet price remained at €57 per piglet. An expected price drop of €2 has been announced for this week.

It is not the case that the German piglet market is only now experiencing pressure. For example, the allowances were already scaled back at an earlier stage. The basic price will probably not escape a major correction next week.

Stable, thanks to Northern Germany
There is a reason why the German piglet price remained stable for so long. It was mainly due to a good demand for piglets in Northern Germany. Now that exporting countries, such as Denmark and the Netherlands, are structurally targeting more countries, this region remains somewhat under-supplied. The piglets are now easier to obtain there too. In Germany there is talk of increasing pressure due to a growing supply.

Correction
Dutch traders also endorse the increasing piglet supply. And in the meantime, more and more account is being taken of the fact that the German pig price is heading for a correction on Wednesday, September 13. Foreign media also speak of an untenable situation.

If a reduction becomes reality, it will not be very encouraging news for the piglet market. The fattening pig farmer will then wait even more and speculate on further price reductions. In the Netherlands, Vion has it on Monday afternoon taken the lead by reducing it by €0,03 to €1,66 per kilo.

Supply depresses BPP
Even after the corrections in recent weeks, the BPP is still too tight, according to some traders. Fattening pig farmers who raise piglets pay, including surcharges, still well above €50 per piglet. While the pig market is not looking good.

The DCA BestPigletPrice drops this week by €1,50 to €45,50 per piglet. This puts the quotation at exactly the same price level as last year in week 37.