Although pig and piglet prices have leveled off after Easter, the chance of high feed profits is increasing. The chunk prices have been falling for a few months and the end of this trend is not yet in sight.
The prices of pork chunks have shown a significant drop in April, according to figures from Wageningen Economic Research. For example, the price of pork chunks fell by €0,35 to €25,85 per 100 kilos. This price has been showing a downward trend since January and the end of this trend is not yet in sight.
Wheat price under pressure
De compound feed price indicator predicts a further decline in the coming months, based on current raw material prices. Closing stocks for wheat, barley and corn are high, putting pressure on commodity prices on the futures markets.
Based on the current wheat areas, some analysts assume that the wheat price on the Matif in Paris will even drop to around €150 per tonne in the coming months. This expectation is based on a favorable growing season in the various production regions and that remains to be seen.
Sow pellet pregnancy also became cheaper in April and fell by €0,30 to €25,90 per 100 kilos. The quotation for sow pellet lakto prescribes a minus of €0,25 per 100 kilos. The price for piglet pellets fell by €0,35 to €37,05 per 100 kilos. The price of starting/transition pellets shows a similar decrease, resulting in €29,80 per 100 kilos.
Higher feed profits
Prices for these feeds will also fall further in the coming months. This further increases the chance of higher feed profits in pig and sow farming. The piglet prices seem to have reached a ceiling (for now); for example, the DCA BestPigletPrice leveled off this week at €57,50 per piglet.
German piglet prices are still on the rise. German pig prices are also moving steadily. Based on previous price movements, further increases are in the offing. This in combination with falling pellet prices gives the green signal for higher feed profits.