Analysis Pigs
Piglet price does not rise, but it was a dime
The piglet market has unexpectedly become tense again, now that pig prices are moving up again. The German VEZG piglet quotation went up and that also attracted the DCA BestPigletPrice (BPP). Nevertheless, the listing remains, although it was close.
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As has often happened in recent weeks, the pig market has taken unexpected turns, causing the piglet market to also have an unusual pattern. Even in early July, the market is still trading higher, which is unusual from a historical perspective.
Yet there are many traders who - sometimes firmly - believe that the ceiling on the piglet market has been reached. Export demand to Spain is declining and supply is growing seasonally. Any increase on the piglet market would then be purely based on movements in Germany, but would not be in line with the market. These traders have no interest in that. There is also a group of traders who believe that the BPP should continue to correspond as much as possible with the German VEZG quotation, which rises by €2 this week to €93 per piglet.
Unchanged BPP
Based on the statements, the BPP remains the same at €79 per piglet. However, based on the statements, it would have made little difference whether a limited increase would have emerged. This means that things are turning in the right direction for fattening pig farmers, while breeders are often happy that the market can still postpone reductions even at the beginning of July.
Click here for an explanation of the DCA BestPigletPrice.