Inside Pigs
BestPigletPrice feels German 'profit warning'
The tone on the piglet market for week 34 is set by Germany. Last Friday, the VEZG already issued a 'profit warning' that surprised many. What does this mean for the DCA BestPigletPrice?
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The most difficult period for piglets still lies ahead. After the holiday period, it takes a while before all companies that have something to do with meat are running at full capacity again. This means that the delivery of pigs does not proceed as it would during periods without holidays. The other inconveniences that the pig market has been dealing with for weeks obviously also play an important role.
Masters wait for opportunities
Farmers who are eager to fill the pen with cheap piglets seem to be waiting for their chances. Anyone who imposes now may have the misfortune of having to join the back of the queue when it comes to delivering the fattening pigs around the end of the year festivities. A certain reluctance is still noticeable among growers, but according to insiders, hitting a bottom does not seem to be long in coming.
Large numbers limited
The trade in piglets has not been characterized by abundant numbers in the past week. The piglet market therefore differs significantly from the pig market. The vast majority of piglets found their place, not least supported by the demand from the export market to Spain. It turned out that the demand for piglets could keep the price up.
As an indication of the piglet price in Germany, a price is issued every Friday by the VEZG (Vereinigung der Erzeugergemeinschaften für Vieh und Fleisch). Last Friday, this indication resulted in a change of minus €6, which would bring the VEZG price to €25. The North/West Listing was unchanged today at €31. This concerns the price of piglets from week 33. The VEZG quoted €34 for piglets for week 25, making Friday's indication a reality. Normally the North/West will follow the VEZG change next week.
Less deep than Germany
Traders who have specified an expected price for piglets for week 34 report that the decline in the pig price weighs heavily on the stated change for the DCA BestPigletPrice (BPP). Nevertheless, several traders report that the piglets were placed smoothly, with some even looking for piglets. Yet the circumstances are such that another reduction in the BPP is unavoidable. This amounts to minus €34 for week 3, bringing the BPP to €27.