Inside Pigs
Pig market further depresses piglets
The piglet market is against the wind. The last few weeks have been far from easy, but the effort to get the piglets placed is increasing every week. Also for week 29, the DCA BestPigletPrice cannot escape a reduction.
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The German piglet market changes by €28 for week 1 and shows a trend report of unchanged for week 29. In recent weeks it seemed that the Germans were going to list the piglets in a different way (more in line with the market), but insiders are now less convinced of this.
The change for week 28 in Germany corresponds to the trend report from the beginning of last week. However, the trend report for week 29 seems somewhat out of place (when compared to the Dutch piglet market) and is experienced as surprising by traders.
30
euro
Heavy waters
The Dutch pig and piglet market has been in dire straits for weeks. The hope for some financial improvement for the masters in particular seems to have been buried deeper. Now that the pig market is also taking a step back, the pressure on the piglet market is increasing.
In practice it is difficult to find a place for the piglets that are left over. There is little or no demand for exports and if there is any demand, it is at low prices. The Spanish quotation for piglets is indicative of this, as it yielded €3,50 last week. A reduction in the Dutch piglet price is inevitable. For week 29, the change in the DCA BestPigletPrice amounts to minus €3, bringing the quotation to €30.
Vion is declining
The Vion fattening pig quotation for week 29 is €1,41 (-€0,04). Vion reports that the sales markets for pork remain weak. As a result of the holidays, sales in Northwestern Europe are under strong pressure. Where previously there was sometimes additional demand from Southern Europe, this now does not occur at all.
In addition, meat companies have reduced production. All in all, a difficult sales situation with further downward price pressure, which means that there is no prospect of a recovery from the margin loss that has occurred in recent weeks.
| DCA BestPigletPrice (week 29) | Price range | Number of problems | Average |
| €30,00 (-€3,00) | € 29,00 - € 31,50 | 17 | €30,471 |
| Explanation DCA Markets: It is clear from trade statements that the piglets are traded for less money than last week. Sales are disappointing, partly because the slaughter pace is being reduced. This has to do with the difficult meat sales and the holidays. The demand for piglets from Spain has also virtually stopped or business is done for little money. In addition, the drop in pig prices does not do much for confidence in the market, which means that fatteners are in no hurry to stock piglets. |
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