Inside Pigs
Trade no longer places piglets
Sales on the piglet market are becoming more difficult by the week. There is no longer any question of a stiff sale. Placing the piglets is now extremely difficult.
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The number of slaughters increased last week in both the Netherlands and Germany. On paper, this should free up more placement space for the piglets. However, in practice, traders do not notice this. Sales have many headaches; it is calling and peddling to get sales done.
Until recently, the majority of traders managed to complete sales. However, the fear is that this will no longer work. The trade is gloomy now that fattening pig farmers regularly order piglets. There is also relatively little demand in Eastern Europe. Although the piglets can be stocked relatively cheaply, pig prices offer little prospect of a positive return. We have to wait for good news to break this pattern.
Difficult weeks ahead
The market hopes that there will be fewer piglets in the long term, due to the high temperatures of recent months. As a result, the breeding sows in many places suffered from fertility problems, resulting in many returnees. However, the first effects of this are only expected in a few months.
The statements to DCA-Markets show that some traders are opting for a reduction in order to get sales going again. Others are of the opinion that lowering makes no sense. The first group has the upper hand, because after averaging, the DCA BestPigletPrice (BPP) must contribute €1 to €28 per piglet. This is the lowest level in the history of the listing.
The trend report for the German piglet price (Nordwest) indicates a reduction of €2,50 to €34,50 per piglet for this week. Traders say that the German piglet price is still too tight. The Danish quotation remains stable, converted into euros, at €38,90 per piglet (up to 30 kilos, PRRS-free).
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The price development of the DCA BestPigletPrice since the listing started at the end of 2015.
Vion: min €0,05
Vion's pork price drops by €0,05 to €1,41 per kilo. In 2 weeks' time, the slaughterhouse will follow the movement of the DCA Scholarship Price 2.0. The slaughterhouse reports that sales of necks and shoulders are difficult. The ham and bacon price is also under pressure. At the same time, there is a wide supply, which explains the price pressure. The market also expects that the German pig price is heading for a major correction.
| DCA BestPigletPrice (week 37) | Price range | Number of problems | Average |
| €28,00 (-1,00) | € 26,00 - € 29,00 | 25 | €27,73 |
| Explanation DCA Markets: The small increases of the last few weeks now feel uncomfortable. Putting on piglets is not automatic for fatteners, as a tour of traders shows. Many fatteners have little confidence in the pig market and therefore postpone imposition. Sales to Germany are also not running smoothly. Since the pig market has been quite active in recent weeks, it will first have to radiate calm and confidence again. The problems with swine fever do not yet offer any prospect of a smoother course of the meat trade and thus an improving pig market. The common thread that now runs through the market is one of sluggish and poorly running trade with little demand and cancellations. Traders are making it clear in their statements this week that the quotation will have to be adjusted downwards and will have to give up the gains of the last few weeks. |
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