Inside Pigs
Does rising pig prices help piglet sales?
Now that pig prices have risen considerably, this offers points of departure on paper for a smoother piglet trade. Does this kite actually fly?
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
In the background of the German piglet market, it is noticeable that the pig price has risen sharply in recent weeks. This means there is a cautious increase in demand for piglets; in the sense that sales are less difficult than in the previous weeks. The North/West piglet price has remained at €35 per piglet. The trend report for next week is unchanged.
Whether the price increase will persuade German fattening pig farmers (who decided to skip a round earlier this year) to stock piglets will remain to be seen in the coming weeks. For the time being, many German pork farmers are keeping an eye on things.
Free piglets remains difficult
In the Netherlands, pork farmers are also reacting cautiously to the increased price. Naturally, market developments offer prospects, but at the same time there is uncertainty as to whether downward corrections will follow in the coming weeks. Sales within the permanent couplings are reasonable, but the sale of free piglets continues to be difficult.
These piglets sell for considerably lower prices than the quotations indicate. This leaves a mark on the market. There is little space for free piglets, because relatively little is slaughtered. This 'problem' also occurs in other parts of Europe. For the time being, there is no support or reason for a higher DCA BestPigletPrice. The quotation therefore remains at €28 per piglet.
Vion: tight supply
After other pig prices rose rapidly, Vion also foresees a plus in the quotation (+€0,08 to €1,48 per kilo). The slaughterhouse says it follows the quotations and endorses that supply tight is. In Germany there is again a shortage of pigs ready for slaughter at the beginning of this week. A third consecutive increase for the German pig price (VEZG quotation) is therefore in the offing.
| DCA BestPigletPrice (week 33) | Price range | Number of problems | Average |
| €28,00 (approx.) | € 27,00 - € 29,00 | 19 | €28,026 |
| Explanation DCA Markets: How do piglet prices respond to the increased pig prices? That was the question that haunted the trade. Despite the fact that the prices last week were surprising in their development, the piglets do not seem ready for such a revival yet. The trade statements show that they want to maintain the quotation for piglets in week 32. As stated in the explanation of week 32, the quotation should arithmetically decrease. That was not implemented at the time. In fact, the piglet market has already made the positive impact that a number of parties had in mind for this week. Pig prices were able to rise due to limited supply. As a result, insufficient piglet places are available, which means that the same movement as last Friday for the pigs cannot be made this week. |
|||