Pressure on pig price is affecting the piglet market

The piglet price may already have found a bottom this week if the pressure on the pig market had been less severe. Now the DCA BestPigletPrice is again falling below the psychological threshold of €30 per piglet. For some time now, the German pig price has been under pressure from large slaughterhouses. Last week there was no reduction, but market sentiment is that this week it is again a close call. There is talk of a possible reduction of €0.10 per kilo. The sale of meat cuts is going so poorly that slaughterhouses say a new reduction is necessary. In Germany, pigs that were to be slaughtered earlier this week are being postponed. That is not a good sign, because the pigs may then be traded at a lower price. Just like the drop in the VEZG piglet price from €3 to €37 per piglet. Pig supply not ample At the same time, the supply of slaughter-ready pigs is not ample, partly because of the slower growth over the past few weeks. This may provide some counterpressure in a market that on balance feels negative, although slaughterhouses are not urging for more pigs. This also has an effect on the piglet market. In a neutral or positive pig market, the piglet price may have found a bottom this week. Various traders are advocating this. At the same time, there are still traders who are opting for further reductions, partly because of the weak pig market. Based on the quotations, the DCA BestPigletPrice falls by €1 to €29 per piglet. The DCA Beurs Mutation Price falls by €0.01 per kilo, which indicates that the direction in the market is negative. Whether this movement continues will become clear next Wednesday.