Analysis Pigs
Piglet price continues to fall in market with surpluses
The downward pressure on piglet prices has not yet subsided and this is resulting in a further decline in the Dutch piglet price.
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We can be brief about the cause: there are too many piglets in circulation in relation to market demand. This causes many loose couples to hang above the market. Bargain hunters are still few and far between at these price levels, despite the increased pig prices in recent weeks.
Weakening of Spanish sales
The weaker demand is also reflected in the export figures. Sales to Spain have fallen below 50.000 units in recent weeks. In week 21, sales to Spain and Germany were almost equal again, while a gap was still visible in the weeks before that. While Spanish demand is decreasing rapidly, German demand seems to be improving. This is also in line with the German piglet price, where price decreases are not yet an issue.
Although opinions differ regarding the extent of the change, many traders believe that the piglet price should fall further. Based on the data, the quotation will fall by €1,50 to €61 per piglet. Partly due to a cancellation of a slaughter day next week (Whit Monday), a bottom is not yet in sight at this time.
Click here for an explanation from DCA Market Intelligence on the listing.