Analysis Pigs
High piglet price shows cracks
The piglet market can be described as erratic. Two weeks ago, traders cautiously opted for a decrease, only to consider an increase again a week later. This was when the German quotation unexpectedly improved further as a result of higher pig prices. Now that the pig market has leveled off, reductions are once again being discussed in the market. Nevertheless, the DCA BestPigletPrice may hold up this week.
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Piglet sales are going less smoothly than a few weeks ago. The supply increases noticeably seasonally. This is partly because there is no growth slowdown, as it has been a while since persistent summer heat.
Growing supply is offset by decreasing demand. Spanish integrations clearly have less need for piglets and offer money back, traders indicate. This is nothing more than usual at this time of year. Mention is made of fattening pig farmers on the domestic market who are therefore no longer stocking piglets. Sales to Germany are continuing smoothly.
The supply of piglets has not yet disappeared, but it is starting to lose some of it. Some traders think it is time for a reduction. Others want to keep the peace with an unchanged mutation. The latter group has the upper hand this week, leaving the DCA BestPigletPrice at €79 per piglet. However, the average of the declarations is below the quotation level for the first time in months.
Click here for an explanation of the DCA BestPigletPrice.