Inside: Pig Market
DCA BestPigletPrice directs the trend
Despite some pressure on the pig price, there are good sales opportunities on the piglet market. Is the DCA BestPigletPrice (BPP) ready for the first increase of 2018?
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Sales on the Dutch piglet market are more favorable than in recent weeks, when there was a stable undertone. Almost every trader can get the piglets properly placed. As a rule, there are no couples that cause problems. Suppliers of free piglets are therefore 'high up' in terms of asking price.
Sales have also become better balanced in Germany. There is no immediate upward movement, as the trend report for the German piglet price (€41,50 per piglet) again shows unchanged this week. There is cautious upside potential on the horizon, which is also in line with the historical movement of the German piglet price. It is true that the resistance among German fattening pig farmers, which is considerable, will first have to be broken.
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Historically, the German piglet price increases from week 1.
Increase in Belgium
In Belgium (+0,50 to €27,50) and Spain (+1,50 to €38,50) there were green quotations last week. The plus in Belgium was more surprising than that in Spain, given that the Spanish piglet price has been on the rise for weeks. This is also in line with the stories told by exporters. It is even somewhat remarkable that the Flemish piglet price spontaneously increased. This is because this listing is usually not at the forefront of the market.
The DCA BPP increases by €0,50 to €39 per piglet. This increase is not an immediate signal for a series of increases in the coming weeks. The market is not ready for that yet, but it is an indication of the trend that is going on.
Lots of slaughter
At Vion, the slaughter lines are running at full speed to get rid of the pig plug after Christmas. According to the slaughterhouse, the meat market is reasonably priced, with the exception of the forequarters and bacon. However, the slaughterhouse is experiencing resistance from the strong euro against the US dollar and the Japanese Yen.
However, this does not pose a threat to the pig price this week, as it remains at €1,37 per kilo. However, Vion is keeping a close watch on the coming weeks. The meat market is currently still too fragile to put a definitive bottom under the pig market.