Analysis Pigs & Pork
Only pig price can stop decline in piglet price
The piglet prices are in a downward spiral, which can be logically explained based on this time of year. As long as the pig prices remain unchanged, this trend seems likely to continue for a while.
After the spring revival, piglet prices mostly fall back, as is the case this year as well. After the DCA BestPigletPrice (BPP) moved to a record level of €80 in mid-March for a few weeks, the quotation has now dropped back to €73.50 per piglet. Just like last week, the BPP is decreasing by €2 this week as well. This places the quotation below last year's level at this time of year.
Seasonal pattern
In 2023, the quotation was able to hold steady during the summer months after the spring period, but this is not the case this year. In the three years prior, the quotation found a bottom after a devaluation around week 21. That was last week. However, it remains to be seen if this will be achieved this year as well, as there is a plentiful supply of piglets due to a lack of (export) demand. Additionally, another slaughter day will be skipped next week due to Whit Monday, which naturally does not promote the flow.
Only an increase in pig prices can halt the decline in piglet prices, but that is not the case yet. Despite a more positive meat market - as evidenced by the rising meat mutations from DCA - an increase in pig prices is not expected this week. Presumably, the piglet price will take a step back next week as well.
Click here for an explanation from DCA Market Intelligence on the quotation.
