Analysis Pigs
This is why piglet market stabilization is being postponed for a while
The flattening trend that the piglet market has shown in recent weeks is being postponed for a while. The sharp increase in the pig price and the catch-up of the German piglet price means that traders are opting for a more substantial increase.
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Sales are not going as smoothly as in recent weeks. This is mainly because export numbers to Spain are lower than they were at the end of February and the beginning of March. At that time, exports were (well) above the 60.000 mark for a few weeks in a row. In week 12, sales had dropped to around 50.000 units. Sales are likely to fall below this mark in the coming weeks, as exporters are reporting weakening demand.
Total sales in week 12 fell below the 1 mark for the first time since week 100.000. This is partly due to the fact that sales to Germany are not going very smoothly. Domestic demand can best be described as stable, with the undertone improving rather than deteriorating. This is due to the rapidly rising pig prices in Europe. That is why traders want to postpone the stabilising trend for a while, as can be seen from the higher figures.
DCA BestPigletPrice
The flattening trend that the DCA BestPigletPrice has shown in recent weeks does not continue in the first week of April. The quotation increases this week by €1,50 to €67,50 per piglet and thus also exceeds the long-term average. The 'extra' increase must be seen in the light of the rising pig prices and the upward movement of the German VEZG piglet price that increases this week by no less than €5 to €66 per piglet. Now that the German pig price has found its way back up, there is also room for the piglet price.
Click here for an explanation from DCA Market Intelligence on the listing.