Solid bottom under DCA BestPigletPrice

Sales of piglets in the Netherlands are going well. There has been plenty of that in recent weeks is gender, is clearly noticeable in the trade. According to traders, fattening pig farmers are increasing their demand at a rapid pace. There are therefore no problem couples. Nevertheless, Vion lowered the piglet price last week by €1 to €37 per piglet. This is probably a compensation for the falling pig price, rather than a reflection of the market.

Germany imposes again
Because the German piglet price fell by €2,50 last week to €39 per piglet, purchasing interest among our eastern neighbors is increasing again. The fattening pig farmers are showing willingness to lay down piglets. The reduced rate, in combination with stabilizing pig prices, is the cause of this. In the short term, the German piglet price is expected to remain at the same price level. The trend message also indicates this.

It is not the case that the export of Dutch piglets to Germany will suddenly go smoothly again. German sales are still highlighted as a 'concern', but are showing cautious progress.

Danish competition in Spain
In Spain, the piglet price stabilized last week at €40 per piglet. Spanish sales are a positive exception to (on balance) slow piglet exports. At the same time, Dutch traders are increasingly noticing competition from Denmark. The Danes seem to offer the piglets cheaper. This is in line with the Danish piglet price, which fell by €3 last week to €46,30 per piglet (30 kilos).

This reduction may be reversed in the short term. The Danish analysts believe that increases are on the way in the coming weeks. Even the smallest stimulus on the pig market would give rise to this. Dutch traders also predict that an increase in the piglet market is not far away. When sales to Germany pick up, the supply in the Netherlands will probably dry up quickly. The idea is that a price increase will be a logical consequence.  

For the time being, the DCA BPP remains at €38 per piglet. Correcting the BPP downwards is generally not presented as an option. This would encourage increasing surcharges, which would be a hindrance at a later stage.

Vion unchanged
Vion's pig price remains at €1,30 per kilo. According to the slaughterhouse, the situation is improving meat market There is no reason to allow the pig price to change upwards or downwards.