Inside Pigs
Piglet price goes down in
Since the pig price does not give the fattening pig farmer any air, the piglet price will have to fall. That is the situation on the piglet market. How does the DCA BestPigletPrice (BPP) respond to this?
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Although supply and demand on the piglet market are not completely out of sync, sales are encountering resistance. This is due to the tepid demand from fattening pig farmers, both in the Netherlands, Germany and the rest of Europe. This increases the supply of free piglets.
Red weeks coming
The hope was that the skewed ratio between piglets and piglets pig price this spring would be eliminated with rising pork prices. However, there is no indication that pork prices will rise in the coming weeks. Especially now that the holiday season is rapidly approaching.
In order to get the ratio right(er), the piglet price will have to be compromised. This is a sore point for some propagators. This is because it is feared that it will not remain at 1 reduction, which means that significantly lower levels are in the offing.
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The piglet prices in the Netherlands and Germany, compared to 2017.
It is also starting to dawn on Germany that higher pig prices are a utopia. It is expected that the German piglet price (the North/West quotation) is in for a significant correction. The trend report for this week is unchanged to a minus of €3 per piglet, with a decrease of €2 per piglet being the most likely in advance.
After a few weeks of building pressure, the DCA BPP can no longer hold. The quotation drops by €1 to €39 per piglet and that does not end the pressure yet. It is more of a signal of the direction being taken. The piglet price is also falling in Denmark.
Pig price Vion
Vion's pig price remains at €1,45 per kilo for the fourth week in a row. According to Vion, the purchasing appetite on the various pork markets (both European and worldwide) is weak. The company reports that the necks are again under price pressure, and the same now also applies to the shoulders.
According to Vion, the bacon price has struggled to remain unchanged, with market demand (in terms of volume) being weak. The rest of the parts have remained unchanged for a relatively small range of fattening pigs throughout Europe.
| DCA BestPigletPrice (week 25) | Price range | Number of problems | Average |
| €39,00 (-1,0) | € 37,50 - € 41,00 | 22 | €39,14 |
| Explanation DCA Markets: It had been in the air for a few weeks: the impending reduction in piglet prices. A reduction could be stopped by an increase in pig prices, but that chance seems increasingly unlikely. This is now that all the ingredients are present to implement an increase, but it cannot be achieved due to the poor performance of the meat trade. And that is a big downer, it causes resistance among the masters. On average, the piglets walk away reasonably well, but it is a lot more difficult than last week. The trend that accompanied the German piglet listing makes it clear that the piglet market in Germany is also in decline. Now that no gains can be achieved in the pigs, the piglets will have to take a step back to ensure that the ratio between piglets and pigs is balanced. |
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