Lower piglet price does not yet lead to more demand

The piglet trade is, even more than usual, focused on the development of pig prices this week. The tension in the market is clearly noticeable now that a reduction in the German pork price (VEZG) appears to be on the way. Due to a wide supply and disappointing meat sales, the market apparently has bad cards in hands.

Supply is growing
The bleak market prospects make fattening pig farmers even more reluctant to stock piglets. At the same time, the increasing slaughter figures provide more placement space. Yet it takes a lot of effort for traders to sell couples, as has been the case for weeks. The result is that the supply of free piglets is growing, partly due to cancellations. Exports cannot relieve the burden on the domestic market either. The numbers going to Spain and Germany are stable at relatively low levels.

Reduction for BPP
Despite the difficult market, some traders believe that a further reduction in piglet prices makes little sense to boost demand. This is because piglet prices are already relatively low compared to pig prices and demand is not increasing. This has become apparent in recent weeks. There is also a group of traders who are in favor of a reduction. The DCA BestPigletPrice therefore decreases by €0,50 to €44 per piglet. The German VEZG piglet price can hold steady at €52,50.

Click here for an explanation of the DCA BestPigletPrice.