September 13, 2017
China Broiler Weekly: AA broiler prices sharply lower as supply exceeds demand (week ended Sep 12, 2017)
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Prices dipped further.
Supplies of finishing broiler increased while demand waned as slaughterhouses limited purchases after securing ample stocks. AA broiler prices plunged 11% on average, with prices in the northern parts of China generally plummeting 14%.
Demand for day-old chicks was soft, but prices consolidated higher following the previous week's sharp fall. Over the week, chick prices increased RMB0.20-0.30/chick to settle in the range of RMb1.70-2/chick.
China breed broiler
As buyers turned cautious, China breed broiler market ended its nine-week rally, which saw prices rise a whopping 77%. Nonetheless, with the availability of finishing broiler remaining tight, price falls were limited to 1% on average.
High prices of native broiler strengthened the confidence of farmers, lending support to the chick market. Prices of day-old chick remained firm during the period in review.
AA broiler prices should recover from the sharp plunge, although the price rebound is expected to be limited due to subdued demand. China breed broiler market will stay stable on the back of low availability.
RMB=US$0.1531 (Sep 13)
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