Inside: Pig Market
Rising pig price helps piglet sales
Although the demand for piglets has not yet shown a significant improvement, a bottom is beginning to form on the piglet market. The DCA BestPigletPrice (BPP) is therefore falling less sharply than in recent weeks.
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The demand for piglets is cautiously showing some recovery. Of course, the rising pig price offers a helping hand. This is also observable in Germany. There, supply and demand on the piglet market are now back in balance. It is clear there that there is an oversupply in the Netherlands; in the sense that an attempt is made to sell it on the German market.
However, this does not lead to lower piglet prices in Germany. The German piglet price (Nord/West quotation) remained unchanged last week at €45 per piglet. This is expected to continue this week, as the trend report does not foresee any movement. A reduction is necessary in the Netherlands, given that a number of export destinations (Spain and Eastern Europe) are not at home. The DCA BPP therefore decreases by €1 to €40 per piglet.
Does rising pig price have a downside?
Demand for piglets can reportedly pick up further if pig prices continue to rise. However, a pig market that is too opportunistic can actually hinder the piglet trade. When fattening pig farmers retain the supply (with a view to higher prices), logically there is less room to impose new piglets. The success on the pig market could then have a downside on the piglet market, traders predict.
It is to be expected that the German pig price (the VEZG quotation) will increase again this week. The distance with the Internet exchange has meanwhile been stretched to €0,08 per kilo; this is €0,02 to €0,03 above the usual bandwidth. It is therefore likely that the pig price in Germany will continue to improve and close this gap.
Pig price Vion up
Vion's pig price follows the uptrend on the market and increases by €0,04 to €1,43 per kilo. Vion reports that the sale of hams is also improving, helped by the failure of a number of processing days. In addition, BBQ parts are in demand, resulting in higher prices.
| DCA BestPigletPrice (week 21) | Price range | Number of problems | Average |
| €40,00 (-€1,00) | € 38,50 - € 41,00 | 19 | €40,16 |
| Explanation DCA Markets: Now that the pig market is adopting a more positive tone, there seems to be a little more room in the piglet market for a more positive outlook. Yet there is no question of an increase in the listing, it is still too difficult for that. There are different perceptions about how the market is. There will be more competition from Denmark on the export market. In our own country, the fatteners have been the least finished, which means that the piglet quotation is not yet able to stabilize. And manure disposal is a problem in a number of areas in the Netherlands, which delays the laying of piglets. On the other hand, there are positive developments in the pig market, which can stabilize the piglet quotation. However, an increase in the price of pigs will have an impact on the supply of pigs, so that the placement of piglets cannot proceed as smoothly. The will to stabilize is great, but the statements show that this week will not come, so a reduction cannot be ignored. | |||