Analysis DCA Pig Index
Pig index falls sharply
The corona pandemic is clearly having an impact on the pig sector. The quotations have fallen sharply, causing the pig and piglet index to also drop sharply.
Both the piglet index and the fattening pig index have shown a downward trend in recent weeks. The piglet index has fallen the most and decreased by no less than 45 points to 184 points (week 15). The fattening pig index declines less rapidly, but still decreases to 118 points. 100 points apply as the 5-year average for both indexes.
Drop in demand
The downward trend is not surprising given that the coronavirus is keeping people busy around the world. Pig prices are under pressure, mainly due to a drop in demand on the meat market due to the lockdowns in many countries. This also dampens the demand for piglets. It is still uncertain how the markets will move in the coming weeks. Sustained price pressure is not an unrealistic thought
On the cost side, we see some relief in manure sales prices, which have shown a seasonal decline this spring. At the same time, bulk prices are rising and that trend is likely to continue in the coming months
Expectation
It is expected that both indexes will not rise or fall significantly in the coming weeks, but this forecast does not include the effect of the corona crisis. In the longer term, the historical expectation is that the pig index may increase, while the piglet index will probably decrease further.
Click here to view more graphs.Â
Chanti Oussoren
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.