Inside: Pig Market
Pig price does not leave DCA BestPigletPrice cold
It was not expected at the beginning of last week that the pig price would suffer such a blow. Under considerable pressure from fattening pig farmers, the upward movement that the DCA BestPigletPrice made then has now been reversed.
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The already lackluster demand for piglets in Germany has since last week Wednesday completely collapsed. The reason for this is the pig price, which took a big hit. The potential return on the already expensive January surcharge now seems completely wasted. The month of May may still be far away, but in advance there is little confidence among fattening pig farmers in the pig price that month.
It looks like the German piglet price will be adjusted downwards this week, as the trend report indicates a reduction of €2,50 per piglet, a serious reduction is in the pipeline. In Denmark there is no reduction. There the quotation remains fixed at €49 per piglet (30 kilos).
Busy in the Netherlands
Just like in Germany, Dutch fattening pig farmers are also complaining about the situation that has arisen. Until last week, the supply of piglets in the Netherlands was on the tight side. Now the pig price is unexpectedly high has submitted, there is a threat to impose fewer piglets for the time being. Under the motto: it is better to have empty stables than to add money yourself. This means that the piglet market in the Netherlands has suddenly come under pressure.
There is no immediate supply pressure, but the listing is yielding to the depressed mood. The DCA BPP therefore makes a correction to last week's increase and decreases by €0,50 to €38 per piglet. It remains to be seen how the piglet market will develop in the coming weeks. Much will depend on the movement in pork prices.
Exports to Spain continue to run smoothly, exporters say. This is also in line with the Spanish pig price, which rose again by one euro last week to €39,50 per piglet. However, the successful Spanish exports do not outweigh the German wait-and-see attitude.
Vion down with it
Following the example of large German slaughterhouses, Vion is also lowering the pork price by €0,07 per kilo. This brings the quotation to €1,30, the lowest level in almost 2 years. This will probably also be the level the German pig price will reach on Wednesday, January 17. Vion attributes the reduction to a large pig supply and a disappointing meat market.
It is mainly the hams and the bacon market that are under pressure. Also the growing stronger euro is affecting meat sales. According to Vion, a new price balance must be sought in the coming weeks.