Piglet market moves away from low point

The piglet market seems to be leaving this year's low point behind. A higher pig price is the main factor for this. It also plays a role that trade wants to prevent the price difference with Germany from increasing further. Trade in piglets is still very cautious. There is concern about only a temporary recovery. Moreover, the expected price increase in pigs still has to materialize. On the other hand, traders cannot ignore the expected price increase. The large difference with the German piglet price also plays a role. The Vereinigungspreis for piglets and the NordWest price in Germany are rising by €1 to €31 per piglet. To prevent the gap from widening further, the DCA BestPigletPrice would also have to rise by €1. A group of traders is in favor of that, but not everyone agrees. A larger group is applying the brakes. They think an increase of €1 now is too early and too premature. It may be that the price increase for pigs later this week will be smaller, they reason. The frontrunners are however convinced that the German pig price will rise by 10 cents per kilo this week. Dutch slaughterhouses must follow that. The price expectation among traders ranges from unchanged to +12 cents. Some expect an increase of 10 cents, while a more cautious group assumes +5 cents per kilo. Tight supply, low weights The supply of pigs is tight and the weights are lower. There is demand for pigs in Germany, Belgium and Southern Europe, says one trader. Another adds that sales in Poland are going better. The prices of cuts are rising there, which is leading to more sales towards Poland. The piglets are benefiting from the higher pig price. That means the recovery has just come in time, because the piglets will still be ready for slaughter in time for the holidays. However, it remains to be seen how high the price recovery will be. Some traders expect that the increase will only be temporary. It is noticeable that trade in piglets is now going better than it did until recently. It is also positive that the German piglet price is going up. This is still a sign that the market is leaving this year's lowest point behind.