Inside: Pig Market
DCA BestPigletPrice hits ceiling
The DCA BestPigletPrice (BPP) posted increases for 7 weeks in a row. Between the end of January and mid-March, the quotation increased on balance by €11,50 to €49,50 per piglet. Why is this series coming to an end now?
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There is a shortage on the Dutch piglet market. However, the extent of this is decreasing somewhat. The reason that the piglet market is at its ceiling is mainly due to the resistance expressed by fattening pig farmers. They see the pig price dropping, while the prospects for the summer months are not very good. That is why they no longer want to pay for the new imposition under any circumstances.
No reason for further increase
Piglets are easily sold outside the Netherlands, although there is also serious resistance to higher piglet prices there. Despite some uncertainty, Spanish demand remains strong on a week-to-week basis. However, the 'extreme' has now disappeared, exporters say. The result of this is that Spanish importers look more selectively at the flocks on offer.
The expectation in the market is that supply and demand will become better balanced in the coming weeks. There are therefore fewer and fewer arguments for further raising the price; this means that the BPP remains at €49,50 per piglet. From some people's point of view, that is €0,50 too high, but others prefer to round the base price up by €0,50.
Stability in Europe
The German piglet price (WeserEms) remains unchanged at €48 per piglet, as expected. In Germany there is a balance between supply and demand. However, German fattening pig farmers also seem to be unsure about the potential of the pig price, as a result of which the willingness to pay is slowly shrinking.
Piglets elsewhere in Europe also remain largely stable. It is expected that the German pig price (the VEZG quotation) will remain stable at €28 per kilo on Wednesday afternoon, March 1,45, although the slaughterhouses remain unpredictable.
Vion's performance remains unchanged
The Vion quotation for fattening pigs remains at €1,45. The slaughterhouse reports that there is no euphoria in the market in the week before Easter. In addition, sales of hams are rather sluggish and the price of bacon is under some pressure. However, the slaughterhouse expects that the sales mix will improve.
| DCA BestPigletPrice (wk 13) | | Price range statements | | Number of statements | | Average of the problems |
| €49,50 (approx.) | € 48,00 - € 50,00 | 19 | €49,26 |
| Explanation DCA Markets: In the previous weeks, Spain's decreasing influence became noticeable on the total number of available piglets in the Netherlands. The Spanish demand for piglets resulted in an increase in the piglet price (+30% in the last 7 weeks). Now that the Spanish hunger for piglets seems to have been satisfied, supply and demand are becoming more balanced. This causes the DCA BestPigletPrice to make a sideways movement. | |||