Inside: Pig Market

Demand for piglets is falling sharply

30 April 2018 - Wouter Baan - 9 comments

The demand for piglets has dropped considerably in recent days. The mood is tense and the market is looking for a new balance. The DCA BestPigletPrice (BPP) is nothing but a hefty reduction.

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Supply and demand differ on the Dutch piglet market. The balance that was still there in recent weeks is making way for a growing supply. On top of that is the sentiment that pork farmers are increasingly expressing. The red slaughterhouse quotations the past week have not done sentiment any good. After all, the pig market is starting to show more and more depressed features.

Traders say that there are hardly any calls for piglets. The oversupply that is starting to occur here and there, traders are trying to eliminate collectively; with fitting and measuring this often works reasonably well. The same principle applies to some for the offer of fattening pigs.

A reduction is also in the air in Denmark

Danish reduction on the way
There is no sign of a changing mood in Germany yet. It has been realized that there is little room for price increases. However, there is no need to reduce the German piglet price (the North/West quotation). The quotation for last week has remained at €48 per piglet, while the trend report for this week is unchanged. This does not apply to Denmark; This week, a reduction is hinted at from (converted to euros) €1,40 to €57,50 per piglet (30 kilos, PRRS-free).

In Spain the piglet market has fallen sharply. For example, the Spanish Lleida quotation fell by €4 to €46 per piglet and further reductions are on the way. For example, the Spanish piglet price fell by €2017 per piglet in 30 between May and September. The Spanish price can be called erratic. Every year the quotation varies between €15 and €55 per piglet. The falling prices correspond with the shrinking numbers transported to Spain from week to week, according to comments from DCA markets. The flow of piglets that continues to go to Spain is being severely curtailed.

BPP gives in, Vion pig price drops 
The gradual decline that was discussed is not so much an issue this week. The DCA BPP decreases by €2,50 to €46 per piglet. If the situation on the pig market deteriorates further, further reductions are likely.

Following the DCA Scholarship Price 2.0 Vion's pig price will also decrease by €0,03 to €1,39 per kilo. The slaughterhouse has announced that a reduction is necessary with regard to meat prices. For example, the price of the attorneys is on the way back; this part was one of the bright spots in recent weeks. The price pressure on shoulders and hams remains in effect. In addition, the supply has increased as a result of the cancellation of 1 slaughter day (King's Day).

DCA BestPigletPrice (wk 18) Price range Number of problems  Average
€46,00 (-€2,50) € 44,00 - € 47,50 22 €45,98
Explanation DCA Markets: The piglet market is facing headwinds. While Spain turned out to be the code word for raising piglet prices to higher levels, the same Spain now seems to have reason to (further) reduce prices. The demand for piglets from Spain is declining; both in number and price. The fatteners are bidding back on the piglets with the current pig prices, which has put piglet sales in a different light. The total picture creates pressure on the piglet market.
 

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