November 18, 2016
China Broiler Weekly: Excess availability, poor demand sink prices (week ended Nov 16, 2016)
An eFeedLink Exclusive
Prices fell substantially.
Prices of AA broiler fell more than expected, as the supplies of contract chicken remained high whereas demand slackened while slaughterhouses limited stockpiles. Over the week, AA broiler prices dipped 4.6% on average,
As farmers incurred losses, sales of day-old chick were sluggish, dragging prices down to the range of RMB1.85-3.25/bird.
China breed broiler
Although demand was weak as well in the native broiler markets, prices inched down a mere 0.44% on average as tight availability pushed up prices in the eastern region by over 6%. In other regions, native broiler prices were lower by 3% on average.
Prices of day-old chicks softened amid poor buying interest.
High release volumes from contract farmers will exert pressure on the market in the near term. However, with prices approaching 2015 second quarter's record lows, price falls should slow gradually.
Prices of day-old chick will likely slide further as farmers are reluctant to build inventories.
RMB=US$0.1454 (Nov 18)
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