Analysis Pigs
Bottom below piglet price is slowly crumbling
The DCA BestPigletPrice remains unchanged again this week, although that is becoming less and less obvious due to the loss of Spanish demand.
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There is a change happening in the piglet market. The shortage that marked the market for months is making way for a wider supply. This is mainly because Spanish buyers are in need of significantly fewer piglets and are therefore offering back. This is also reflected in the Spanish piglet quotation. Last week it took a step back for the first time in a year and fell by €2 to €89 per piglet.
Export figures to Spain have been declining for some time now and this trend is likely to continue in the coming weeks, as is seasonal practice. This, in combination with an increasing supply of piglets in the Netherlands, brings supply more in line with demand. There is no oversupply due to good sales on the domestic market and in Germany. However, several insiders indicate that sow productivity is currently very high.
Listing still stable
The German VEZG quotation remains at €84,50 again this week, although there are rumors that surcharges are moving downwards. The DCA BestPigletPrice also remains stable, at €77,50 per piglet. The average contribution at DCA Markets has been below the quotation level for two weeks, which brings a decline in the piglet price closer.
Click here for an explanation of the DCA BestPigletPrice