Analysis Pigs
Demand exceeds resistance on piglet market
Although pig prices are showing little sign of increasing, piglet quotations continue to rise. In the Netherlands, the DCA BestPigletPrice rises for the fifth week in a row, while the German VEZG quotation is also rising again.
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The story at the piglet market can be summarized in relatively few words. The demand for piglets exceeds supply, without extreme shortages. In addition to good domestic demand, buyers from Germany and Spain are also calling more often for new couples. These are patterns that suit this time of year.
Two camps
Despite the tight supply, there is also resistance from fattening pig farmers. The piglet price is already relatively high and pig prices are not rising yet, or so the idea is. In addition, there is also the fear of a possible implosion in pork prices around the December holidays, when there is often a pig plug. For traders who have to navigate between both camps, this tension sometimes causes headaches.
However, the majority of contributors to DCA have again opted for an increase in the BPP this week, mainly to keep allowances in line. The quotation therefore increases again this week, by €1 to €64 per piglet. The German VEZG quotation also rose this week for the first time since the end of June, by €0,50 to €70,50 per piglet.
Click here for an explanation of the DCA BestPigletPrice.