Inside: Pig Market

Can't get any movement in DCA BestPigletPrice

18 December 2017 - Wouter Baan

Some speak of a lively trade on the piglet market. What is the mood on the piglet market and which direction is Vion's pig price taking?

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Many pigs have been slaughtered in recent weeks. This means that there is a lot of room for new additions. Sales to Germany are also slowly picking up, although it certainly cannot be called lively demand. Others believe that sales are waning towards the end of the year. On balance, it can be said that supply and demand are currently reasonably in balance.

€38

notes

the DCA BestPigletPrice

There is no wild demand for the free flocks, but relatively few piglets from the permanent flocks enter the free market. Due to the moderate prospects on the pig market, some occasional fatteners are staying away. Nevertheless, almost every trader gets the piglets placed. The DCA BestPigletPrice therefore remains stable this week at €38 per piglet.

As expected, the North/West piglet price remained stable at €41,50 per piglet, while the trend report for this week is unchanged. There is significantly more demand for piglets in Spain. This is clearly reflected in the Spanish piglet price, which rose by €2 last week to €34 per piglet. In the previous week, the quotation also rose by €1.

Mood suppressor
The big difference with last year is the mood among fattening pig farmers in Europe. In terms of supply in animal numbers, the market is more or less comparable to the end of 2016. However, in terms of demand this is not the case; A year ago, fattening pig farmers were much more optimistic, so everyone was looking for full stables.

Then too, the BPP leveled off between Christmas and New Year, but the piglet market picked up again in the second week of January. Due to the depressed mood, a flatter start to the piglet market is expected in 2018.

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A year ago, the BPP recorded €49 per piglet in week 51

Pig price Vion
This week, Vion's quotation for fattening pigs was viewed with more than usual interest. A significant reduction was taken into account, but opinions differed as to how high it would be. Ultimately, the change amounted to minus 4, as a result of which Vion has adjusted the pig quotation downwards by a total of €3 in the past 0,07 weeks. And that is equal to the change that the DCA Exchange Price 2.0 has applied in the past 3 weeks.

As a basis for the reduction, Vion indicates that sales to industry will be limited from Wednesday. Due to the upcoming holidays, meat companies no longer want to receive meat from Friday. Many companies are closed in week 52. In recent weeks, the slaughterhouses have stocked a lot of meat, putting pressure on meat prices (including hams, shoulders and bacon). According to Vion, the situation is comparable within Europe.

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