DCA BestPigletPrice does not yet stimulate sales

Compared to last year, the average European piglet price in 2018 will start around 10% lower: at €43 per piglet. Historically, however, the piglet market is almost in line with the average between 2012 and 2016. The past year was also a special year, as quotations in March and April were at record highs.

Piglet market in balance
In the last weeks of 2017, the North/West piglet price remained at €41,50 per piglet. This is probably also the quotation in the first week of January, as the trend report shows no change. In terms of supply and demand, trade is reasonably balanced, including in Germany. Some notice that trade is picking up somewhat, but others still see the same picture as in the last weeks of December.

Customers from distant destinations seem to be offering back, which dampens the mood. Others see upside potential in Spain. On balance, however, there is little reason for different prices. That is why the DCA BestPigletPrice (BPP), also in the first week of the new year, remains at €38 per piglet.

Pig market remains standing
After a few weeks of holiday, the Internet Fair started again on Tuesday, January 2. During the first auction of 2018, the quotation closed at €1,40 per kilo, €0,03 per kilo lower than the closing position of 2017 in mid-December. This means that the indicator of the German pig market has weakened towards the level of the German pig price (€1,37 per kilo).

In terms of trading volume, only less than half of the lots offered were sold. It can be seen as a signal that the pig market is trending downwards rather than upwards in early January. Vion's pig price remains at €1,37 per kilo this week.

The market currently assumes that the German pig price will also remain unchanged on Wednesday, January 3, despite there being supply pressure. By mid-January, when both the pig and piglet markets have returned to normal, it will probably become clearer what the mood actually is.