DCA BestPigletPrice piggybacks on pig market

At the start of a new calendar year, there are opportunities for a rebound in piglet prices. Yet 2018 turned out to be something different. In particular, the development of fattening pig prices seemed to inhibit the free movement of piglet prices. Still, the pork market has managed to shake off the negativity, now that several meat items are pluses. This results in a plus over the entire pig.

Gloomy scenarios do not give a chance to a possible rebound in pig prices. Nevertheless, there is good hope that next Wednesday (February 7) the pigs in Germany will increase further, so that the Netherlands cannot actually be left behind.

Mutation for finishers
This week, Vion has the task of being the first of the Dutch slaughterhouses to come up with a mutation for the finishing pigs. Where it seemed on Friday 2 February that it would not follow the movement of Germany, the mutation of Monday 5 February shows that this is the case. As a result, the Vion price for finishing pigs is €1,32 (+0,02).

With that in mind, the way to a plus in the piglet price seems open. Also due to the high slaughter rate that slaughterhouses managed to achieve in the first weeks of 2018. As a result, there is a lot of room for placement at the master. This ensures a positive development in the demand for piglets, which was already estimated better for the domestic market last week than the demand for piglets in the export market. But the export market certainly plays a positive role, as can be concluded from the market. The role of Spain has been there for some time, but the tough German market also seems to be becoming more malleable.

Sentiment is determined
Also this week it is clear that the demand for piglets determines the sentiment for price formation. The demand is good, which means that the piglets are placed quickly. Not all questions can be answered. This is due to a lack of piglets. It is expected that the demand for piglets will increase further in the short term and that the supply will struggle to catch up. Based on the input, the DCA BestPigletPrice plus €1,50 to €39,50.

The expectation of the mutation for week 6 (+€1,50) proves that our eastern neighbors are also positive for the piglets. The previous notification of plus €1 has been adjusted. For week 5, the movement has been unchanged, leaving the Nord/West quotation at €39.