Analysis Pigs
Pressure on piglet prices persists longer than expected
The piglet market is having more difficulty finding a bottom than previously estimated. The cause of this lies with the pig prices struggling to move upward.
There is a lack of real market demand for piglets and meanwhile, the supply has not decreased. Finding a market for larger batches is not much of a problem, but the small batches of a few hundred piglets are difficult to market. In addition to a somewhat sluggish domestic market, there is a lack of serious export demand, especially from Spain.
The underlying cause is the still flat pig prices in Europe. Due to the cool and wet summer weather, the demand for meat cuts is not really picking up. This is also evident from the DCA carcass component prices which are largely moving sideways this week. Only the shoulders are moving, but not in a direction favorable to pig prices. In the market, there is also a sense that belief in rising prices is waning as time goes on.
In light of the current pig prices, many traders believe that the piglet quotations are overvalued. Therefore, they opt for a further reduction. Based on the data provided, the DCA BestPigletPrice will decrease by €1 to €70.50 per piglet this week. This decline gains a bit more momentum than the reductions in the previous weeks.
Click here for an explanation from DCA Market Intelligence on the quotation.
