Analysis Pigs
Piglet prices continue to rise, uncertainty about pig prices
The piglet market is benefiting from tight supply and strong exports, causing prices in Europe to rise further. At the same time, differences in pig prices between the Netherlands and Germany are creating tension in the market. Read more about the development of the DCA Exchange Price and DCA Exchange Change Price.
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The shortage of piglets persists for the time being due to good sales opportunities at home and abroad. However, the Spanish market is showing signs of saturation. Numbers remain stable, but prices on the free market are not rising further, it is reported. Export figures to Spain showed an upward trend in recent weeks and peaked above 50.000 head in week 10. The peak in the past two years had already been reached by then.
Up 3 euros again
Piglet prices continue to rise across Europe for the time being. Based on the data, the DCA BestPigletPrice rises by €3 to €57 per piglet, just like last week. This is in line with the average of the data. The VEZG quotation rises by €5 this week to €56 per piglet.
The fact that the German market is rising faster is due to the more sharply increasing pig prices. The quotation there rose by €0,10 per kilo last week, while Dutch slaughterhouses increased it by €0,05 per kilo.
Although the markets are historically closely linked, differences also exist. One explanation is that Dutch slaughterhouses are more dependent on exports. German slaughterhouses, on the other hand, benefit from strong domestic demand that picks up towards Easter.
Is the price difference getting smaller?
The question now is whether Dutch slaughterhouses will raise prices this week after all to narrow the gap with Germany. The expectation is that the German pig price will not rise further this week and that the last increase was before Easter. Two split slaughter weeks follow next week. As a result, supply is presumably sufficient in relation to demand. Consequently, the strong demand for piglets will likely weaken slightly in the coming weeks.
Many traders believe that it is now up to Dutch slaughterhouses to narrow the price gap with Germany. Based on the data, the DCA Exchange Price Increase is rising by €0,05 per kilo.
Click here for an explanation from DCA Market Intelligence on the BestPigletPrice.
Click here for an explanation by DCA Market Intelligence on the Exchange Mutation Price.