China Broiler Weekly: Low AA broiler prices stimulate buying, fuel price rally (week ended Mar 8, 2017)
An eFeedLink Exclusive
AA broiler surged as low prices enticed slaughterhouses to increase stockpiles while supplies of finishing broilers dropped considerably. Rebounding strongly from historic lows, AA broilers catapulted by a whopping 36% over the week.
In view of supply shortages due to high mortality rates, AA broiler farmers expanded inventories while chick prices were low. This pushed prices up by RMB0.80-1.20/chick to RMB1.35-1.80/chick as supplies were inadequate to meet the abrupt jump in demand.
Prices of fast-growth native broilers continued to fall 9% in Guangdong, where the bird flu outbreak remained severe. However, in other regions of China, demand recovered lifting prices steadily. Overall, prices of China breed broiler increased 2%.
Nonetheless, prices of day-old chicks stayed weak as farmers were cautious in expanding stocks.
AA broiler market is likely to see a downward correction in prices, as slaughterhouses turn cautious after the recent rally. However, at less than RMB6/kg, current prices are still way below past years' average of RMB9.38/kg. Unless, the bird flu epidemic worsen in the coming period, AA broiler prices are unlikely to break the new low record set a couple of weeks ago.
For China broiler, prices are expected to consolidate higher as supplies are limited.
RMB=US$0.1447 (Mar 10)
eFeedLink offers monthly China hog and poultry market trackers, including analyses and on-the-ground information from Guangxi, Guangdong, Hunan, Hubei, Sichuan, Jiangsu, Henan, Shandong, Hebei and the whole of China. These provinces cover at least 70% of the total hog, poultry and related feed production or consumption in China. For more information, visit: http://www.efeedlink.com/eFLResearch
All rights reserved. No part of the report may be reproduced without permission from eFeedLink.