German piglet price is heading for a significant correction

Piglet sales in the Netherlands are extremely slow. This situation already exists several weeks the case. In Germany the situation is not much different. Over the past week, the German piglet price (the North/West quotation) has been on hold (€38 per piglet). According to some traders, this change is not in line with the market, so the surcharge had to be spared.

Challenging conditions
It is no surprise that the German piglet price is still heading for a significant correction. The trend report for this week indicates a reduction of €3. It remains to be seen whether lower piglet prices will motivate fattening pig farmers to stock piglets. The mood is negative and fattening pig farmers are extremely cautious. The mixed farms in Germany are in the grip of the drought and grain harvest. The stocking of piglets is therefore plan B.

Piglet exporters speak of challenging circumstances. In addition, there is an extra disruptive factor this week: the weather. The high temperatures in Northwestern Europe cause growth delays in fattening pigs, leaving less room for new stock.

Depth record in sight
All in all, the market is still too fragile for a bottom below the BPP. The quotation drops this week by €1,50 to €28,50 per piglet. This means that the BPP is not far from the lowest point in its history. The BPP officially started in the autumn of 2015. In the same year, €28 per piglet was briefly recorded. The coming week(s) will reveal whether this record low will be broken.

Vion unchanged
After the pork price at the Vion slaughterhouse was reduced by €0,04 last week, the quotation remains unchanged this week (€1,41 per kilo). The slaughterhouse reports that meat sales remain very weak across the board. With the unchanged pork price, Vion is trying to break the negative trend on the meat market.