What keeps DCA BestPigletPrice afloat?

An interesting situation is happening on the piglet market, because compared to the pig price, the piglet price is high according to some parties. However, this makes little difference the demand for piglets.

Dutch fattening pig farmers have competition from their colleagues from Spain and Germany, where there is a lot of demand. German demand in particular is highlighted as good this week, while Spanish demand remains reasonably stable; especially at constant prices. 

High demand in Germany
This sound is confirmed by Germany, as it is reported that German fattening pig farmers are hastily imposing. Despite last week's rising trend report, the German piglet price (the Nord/West quotation) has remained at €48 per piglet. However, it must be expected that the price will rise in the coming weeks.

This expectation does not apply to the BPP. The statements show that there is enough support to keep prices unchanged. However, traders are letting us know that a turning point (slight decline) is approaching. For week 15, the DCA BPP remains at €49,50 per piglet.

(Text continues below the chart)Will the DCA BPP fall earlier in 2018 than in recent years? 

Pig price Vion 
There is still unrest on the German pig market due to the various 'haus prices'. Slaughterhouses that do not have their own pricing policy notice a wider range. This is because an attempt is made to place pigs ready for slaughter with these parties. Vion was in the Netherlands last week the first who started the way down; this week, however, the pig price remains at €1,42 per kilo.

The slaughterhouse says that the meat market is virtually unchanged compared to last week. This means: price pressure on the hams and shoulders, and uncertainty on the non-European markets. This because of the import duties that China uses on pork from the US.