Analysis Pigs
Tight supply keeps piglet prices up
Given the tough situation in the fattening pig market, there is plenty of reason to reduce the piglet price this week. However, there are also other factors at play as to why this does not happen. The main one is the tight supply of piglets.
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There isn't much music at the piglet market. Exporters complain about difficult trade, because pig farmers are not very enthusiastic about stocking new piglets. This also applies in the Netherlands itself. The German VEGZ speaks of a market that is not very volatile. The result of all this is a stable DCA BestPigletPrice again.
In its commentary on the German market, the VEGZ indicates that in its opinion the period of strong price reductions for fattening pigs is over. While that's not exactly encouraging news, it can still be interpreted as somewhat positive that more stability is expected on this front.
In terms of numbers, piglet exports have picked up reasonably well in the new year. Slightly fewer animals went to Germany, more to Spain.
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According to traders, this does not make much of a difference in yield.
Click here for an explanation of the DCA BestPigletPrice.