Inside Pigs
Press DCA BestPigletPrice increases
The situation on the piglet market is not getting any rosier now that a number of fattening pig farmers are waiting to impose. The question is therefore not whether, but how much the DCA should commit to BestPigletPrice (BPP).
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After the DCA BPP surrendered €1 per piglet last week, the other piglet quotations far exceeded this. For example, Vion reduced the piglet price by €2 to €38 per piglet, while the Flemish piglet price also fell in that order of magnitude. It is a signal that the piglet trade is difficult to achieve. Due to the declining piglet quotations, it is worthwhile for fattening pig farmers to wait and see.
BPP
drops
Reduction in Germany
Slow sales also lead to red listings in Germany. The North/West piglet price was reduced by €25 to €2 per piglet on Monday 43 June. A similar reduction is expected this week. The traders say that the price must drop significantly to enthuse fattening pig farmers for new sales. Due to the disappointing pork price and the rising feed- and manure sales prices the relationship with piglet prices has, as is known, been skewed. The reductions initiated are an initiative to correct the imbalance.
The. may help pig price will lend a hand in the near future. There are rumors that the German pork price is heading for an increase due to a tight supply. Although several traders express these thoughts out loud, there are also voices that slaughterhouses are struggling with declining margins. It remains to be seen whether the pig price will create room. If the pig price starts to increase, it will probably remain a matter of pennies.
No movement in Vion listing
Vion's pig price remains stable at €1,45 per kilo. It is already the fifth week in a row that this quotation has been on the boards. This is the longest consecutive period (in 2018) that the pig price remained stable. Vion emphasizes that unchanged is currently the maximum achievable.
According to the slaughterhouse, shoulder sales are showing a deterioration. It is noticeable that the holiday season is approaching. Thanks to the tight supply, the price can remain stable.
| DCA BestPigletPrice (week 26) | Price range | Number of problems | Average |
| €37,50 (-€1,50) | € 36,00 - € 39,00 | 20 | €37,325 |
| Explanation DCA Markets: The piglet market has been under pressure for a number of weeks, which seems to be increasing rather than decreasing. There are major concerns about the current state of affairs, where pigs do not want to increase in price and piglets remain relatively on the expensive side. More and more often, the laying of piglets is postponed for all kinds of reasons, resulting in less flow. The pig farmer does not seem to be able to cope with high feed prices and high manure disposal costs, but he can cope with overpriced piglets by simply not imposing or offering back. From the averaging of this week's statements it is clear that trade is encountering more headwinds than in previous weeks. |
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