Analysis Pigs
Price pressure will remain on the piglet market for a while
The pressure on piglet prices will continue for the time being. The surplus may not be too bad in terms of size, but there are hardly any buyers for it. The export demand is also declining with the Spanish bidding back.
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There are simply too many piglets in relation to the demand. The fact that there will be one day less slaughtering this week because of Pentecost does not help. There are almost no buyers for the piglets that are left over, it is said. Various remaining couples are offered from different sides, which may make the surplus seem larger than it actually is.
Spanish export demand is also difficult. The high temperatures expected later this week pose an additional logistical challenge. But apart from that, the Spanish are offering €3 to €4 less than a week ago. The falling Spanish piglet price also reflects the lower demand, although the decline was somewhat less steep last week.
Almost every trader believes that the DCA BestPigletPrice should be lowered. The €60 threshold is a psychological benchmark. Some traders want to be below this, while others want to stay above it. Based on the statements, the quotation drops by €1,50 to €59,50 per piglet. This means that the BPP has fallen back to the long-term average. The German VEZG piglet price remains at €74 per piglet this week.
Click here for an explanation from DCA Market Intelligence on the listing.