Analysis Pigs
Pig market pulls down piglet prices
The price declines on the pig market are more persistent than expected. This also calls into question the foundation under the DCA BestPigletPrice.
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Sentiment on the pig market has turned considerably after an extremely positive summer. The pig quotations have already been significantly depreciated, but not yet enough to the liking of slaughterhouses. The will to reduce is particularly persistent. Especially in Germany, where slaughterhouses use the cancellation of a slaughter day to put a Hauspreise on the plate. This also drags down the Dutch market. For example, Vion lowers the quotation by €0,03 to €2,25 per kilo. The slaughterhouses that quote on Wednesday will probably also deduct €0,03 to possibly €0,05 from the price.
Not a favorable development
This situation is not a favorable development for the piglet market. The lower prices blur the view of returns in the chain. Many traders think that piglet prices should move accordingly. The German VEZG quotation will decrease this week by no less than €3,00 to €74,50 per piglet. The DCA BestPigletPrice does not have to be so colorful, because the German quotation had remained at a high level for much longer. Retroactively perhaps too long, because even after the downgrade the quotation remains firm. Based on the statements, the DCA BestPigletPrice decreases by €0,50 to €61 per piglet.
Click here for an explanation of the DCA BestPigletPrice.