Piglet price bends downwards due to pressure

The supply of piglets is not very large, according to various sources in the market. The remaining batches that are available are often acquired by traders themselves. Therefore, there is no question of a surplus market.

Nevertheless, signals of lower prices are coming from export markets. Whereas a few weeks ago well over €70 could still be obtained for free-range piglets, this has now dropped to around €65 per piglet.

Resistance is growing
Meanwhile, pig fattening farmers are becoming increasingly reluctant to raise piglets. The fact that pig prices did not rise last week has further increased resistance. Finishers are even threatening to temporarily stop raising piglets to turn the market around.

After a few years of disappointing returns due to high piglet costs, pressure has mounted. Sometimes even to a high level. Especially since slaughter pig prices show no signs of rising for the time being. Based on data, the DCA BestPigletPrice is falling by €1 this week to €56,50 per piglet. Price declines are also visible in other EU member states, or surcharges are sometimes under pressure. 

Pig market mood is lackluster
In recent weeks, the underlying tone in the pig market has been positive, without this resulting in rising prices. Since the middle of last week, sentiment has shifted somewhat. Although a price cut is not imminent, a rise is not within reach either.

This is not only due to slaughter days being cancelled because of King's Day and Labour Day, but also because meat sales are disappointing. Lower prices for hams are the result, as shown by the DCA changes for meat cuts. Slaughterhouses indicate that they are producing for cold storage, while there is little demand for it. Moreover, due to high energy prices, extra surcharges are often charged for product storage. Consequently, Tönnies is slaughtering one day less in Sögel. 

After two consecutive increases (which were not followed by slaughterhouses), the DCA Exchange Price Change remains unchanged this week. Opportunities for further increases are not foreseen until the second half of May, although this sometimes seems like wishful thinking without clear substantiation.

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.