Piglet price picks up unexpectedly quickly

It is not an unrealistic scenario that pig prices will be 5 to 10 cents higher within the next four weeks. The demand for pork is slowly improving, also on the global market. This is also reflected in DCA's meat quotations.

In addition, the broken slaughter weeks after yesterday are a thing of the past for the time being and the pig supply is drying up seasonally. Historically, higher pork prices are very common in June. The view outlined may be somewhat opportunistic, but nevertheless not an unachievable option.

It would be a solution for the piglet market if pig prices started to increase. The market has been in a difficult phase in recent times, with quotations having been significantly depreciated. The large supply of slaughter sows indicates that breeders have little confidence in the market. A confidence that will not simply be restored if pig prices were to pick up. After all, the negative margins have not simply been wiped away.

No more 'push market' 
If the pig price rises, it is likely that piglets will be pulled more often, traders say. Compared to fattening pig prices, the piglets are favorably priced, although the high feed prices give a clouded picture. It is already noticeable that the piglet market is no longer the 'push market' that it was in recent weeks. This already set a floor under the DCA BestPigletPrice last week.

A number of traders have already opted for a small increase again this week, prompted by the friendlier mood on the pig market. There is also a group of traders who advocate unchanged, but the average indicates a small increase. As a result, BPP increases by 50 cents to €39 per piglet. It can be said that the turnaround in the market will come relatively quickly. Without a concrete increase in the pig price, there does not seem to be much room for further upward price corrections. 

Click here for an explanation of the DCA BestPigletPrice.