Pigs take the lead to avert pressure on piglet prices

Demand for slaughter pigs is good and supply is manageable to tight. Slaughter pigs are easy to place both domestically and abroad. Slaughterhouses regularly call traders to ask if they can deliver a few days earlier than planned. The capacity utilization is not being fully utilized.

However, it is uncertain whether this will lead to an increase in pig prices. In Germany, there are indications that the VEZG quotation may rise, although slaughterhouses are exerting significant resistance. Last week, the quotation remained stable under similar circumstances. To put it positively, Wednesday is touch and go, although any potential increase will not exceed five cents. 

There is room for an increase. After all, Danish Crown also raised pig and sow prices last week, while supply in Denmark is certainly not small due to the growing pig herd.

Renewed rise in DCA Exchange Change Price
The DCA Exchange Price is rising again this week by €0,01 per kilo, although not every trader is advocating for an increase. The chances of price increases in Northwest Europe would have been greater without the cancellation of slaughter days this coming week. In the Netherlands, no slaughtering will take place on King's Day (April 27), and German slaughterhouses will be closed next Friday due to Labour Day (May 1). Incidentally, this applies to several European member states.

Supply must support higher pig prices, but meat prices are moving largely sideways this week, according to the DCA component changesOnly the pork shoulders are rising by €0,05 per kilo. This is a seasonal product for which demand typically picks up towards the summer.

Pressure on the piglet market is increasing
Meanwhile, pressure on piglet prices continues to increase seasonally. The Spanish quotation was the first to drop, after having previously reached its highest level. The decline is linked to weakening Spanish demand for Dutch piglets.

Although supply is growing, relatively few remaining batches are currently being offered. This is expected to increase in the coming weeks. Only a clear rise in the pig price can delay a drop in the piglet price, it is said. 

The average of the DCA BestPigletPrice falls by €0,10 this week to €57,37 per piglet. Consequently, the foundation of the Dutch piglet quotation is crumbling. Rounded, however, this results in an unchanged price of €57,50 per piglet.

Click here for an explanation from DCA Market Intelligence on the BestPigletPrice.

Click here for an explanation by DCA Market Intelligence regarding the Stock Exchange Change Price.