Gap between Dutch and German piglet price grows

The pressure on the piglet price continues at the beginning of June as well. A lack of export demand and reluctance among domestic finisher pig farmers mean that the market is still struggling to find a floor. Meanwhile, the pig market is somewhat firmer. Although the number of free lots without a destination is not exceptionally large, there is a lack of buyers. As a result, sentiment in the market remains negative and pricing is under pressure. The lower end of the export market currently stands at around €35 per piglet for separate collection lots. For larger, standard lots, €45 per piglet is generally paid, or sometimes a little more. From Spain, bids of well over €50 per piglet are coming in, according to multiple sources. Pressure continues Based on the reports, the DCA BestPigletPrice is falling this week, just like last week, by €2.50 to €40.50 per piglet. The weekly price decline is not accelerating further, but there are as yet no clear signs of a bottom either. The market often moves step by step toward equilibrium, which makes it highly likely that the quotation will fall below the €40 per piglet mark next week.Meanwhile, the gap with the German piglet price is growing, which remains unchanged this week at €52 per piglet. This is creating increasing friction in the market, especially among Dutch finisher pig farmers who buy piglets at this quotation. According to market participants, some contracts are under pressure and surcharges are being scrutinized more closely. Slower growth The high temperatures of recent days are causing slower growth of finisher pigs at some farms. Although this currently has no direct consequences for the placement capacity of piglets, it may play a role in the longer term. At the same time, the pig market looks less positive than a few weeks ago. Slaughterhouses have sometimes increased surcharges, but there is still no clear upturn. There is speculation in the market about an increase in the German pig price, although that expectation currently seems to be based more on hope than on concrete market signals. For this week, an increase seems virtually impossible. Because of the celebration of Corpus Christi, slaughterhouses in several German states are closed on Thursday 4 June, including North Rhine-Westphalia. In addition, summer holidays begin in a little over a month, a period in which price increases historically rarely occur. The time window in which the market has a chance to rise is therefore limited. The DCA Beurs Mutation Price for finisher pigs remains unchanged this week based on the reports.