October 10, 2016
China Broiler Weekly: Sharp fall in prices amid supply glut (week ended Sep 28, 2016)
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Prices weakened further.
AA broiler farmers hastened releases fearing that demand after the long October holidays would worsen. With sales of chicken products staying weak, prices plunged significantly by 5.4%.
As AA broiler market underperformed during September, farmers who were incurring losses withheld the purchases of chicks, sending prices down RMB0.60-0.95/kg to RMB2.8-3.60/kg.
China breed broiler
China breed broiler prices slid 4.6% as supplies exceeded demand, just like in the AA broiler market.
Day-old chick sales dropped as well, albeit at a much moderate pace.
China's broiler markets will be under pressure during October, as demand for chicken softens prominently. Although the quantity of finishing broilers have diminished during September due to high releases, prices of broilers are still likely to move lower, decimating the demand for day-old chicks.
RMB=US$0.1492 (October 10)
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