DCA BestPigletPrice reaches record low

De temperatures This past week has made market conditions even more challenging. Due to growth retardation in fattening pigs, there is less room to produce new piglets. Some transports have been delayed due to the heat protocol. This week will also probably bring temperatures of 30 degrees Celsius.

Elsewhere in Europe the mood is not much better. The German piglet price (North/West quotation) drops this week by €3 to €35 per piglet, more than €10 below the 5-year average. Historically, the pressure on prices has not yet been countered at this time of year, which means that further reductions cannot be ruled out.

Take care
However, it is likely that the German piglet price will come to a standstill next week. The trend report for next week is in the range from unchanged to minus €2. A constant quotation is most likely here. However, a constant pig price is crucial in this scenario. Completing the wheat harvest also provides clues; Mixed farms therefore have time to introduce new piglets. The hope is that a combination of these factors will provide a bottom. 

Prices are also dropping quickly in Denmark. Converted into euros, 1 piglet (30 kilos, PRRS-free) costs €40,30. In Spain, the piglet price fell last week to €21 per piglet. Historically, the Spanish piglet price should reach a bottom in the coming weeks; Whether this will happen remains to be seen.

It is striking that Dutch pig exports to Spain have held up reasonably well until recently. Until week 22 (first week of June), approximately 15.000 to 20.000 piglets went to Spain every week. This is more than double compared to previous years.

Small correction
The statements at DCA Markets show that a number of traders opt for an unchanged change in the DCA BPP. However, the contributors are not unequivocal on this point, because the quotation reduces €0,50 to €28 per piglet. This is a historical one depth record. This may be a final correction for a provisional price floor. However, it is 'warned' that August will also be a challenging month in terms of sales. 

Vion pig price correction 
Vion's pork price has dropped €0,02 to €1,39 per kilo this week. The slaughterhouse notes that sales are very difficult due to the holiday period. According to the slaughterhouse, the sale of hams is even a headache. Vion's mutation can be seen as a correction last week; Vion then kept the quotation stable, while other pig prices changed downwards.