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Market Reports

December 9, 2014

China Livestock Market Bi-Weekly Review: China livestock prices stay weak in October; bird flu casts shadow on poultry market
An eFeedLink Exclusive
Pork demand rebounded during late October but overall demand over the month stayed weak.
Livestock Market

Weekly pork carcass sales in major wholesale centres (early-mid October)



Change compared with
previous week


Change compared with
previous week

Week 41





Week 42





Week 43





Week 44





Lacklustre post-festive demand continued to drag down pork carcass sales after mid-October, sending weekly sales in major centres to less than 9,200 tonnes. Although demand recovered at a moderate of 1.9% in the following week, prices slid further, losing 4% on average during the month of October.
As pork demand remained poor, hog prices slid 3.8% over the month, even as the quantity of finishing hog was limited.
Broiler market was under pressure, firstly due to weak post-holidays demand and secondly beaten by worries over reports of confirmed cases of human H7N9 bird flu infections during middle of the month. Fearing that live poultry markets might be shut down again, China breed broiler farmers released inventories eagerly, dragging prices down by 6% within the last two weeks of October, when AA broiler prices edged down only 1%.
Despite slower falls during the second half of October, AA broiler registered a greater dip of 6.1% over the month due to prominent drops during early October amid excess supplies. On average, China breed broiler prices were lower by 3.6% in October.
Feed Market
Soymeal market remained soft despite momentary rebound in prices at times, as feed millers restocked depleted inventories while the product was cheap. Compared with late September, soymeal prices were lower by 2.2% by end of the month, mainly due to a soft CBOT soy futures market.
As corn harvest in the northeast region greatly increased the availability of the grain, whereas low livestock population after high releases in September dampened the demand for corn, prices continued to slide after mid-October. Month-over-month, corn prices lost 4.7%.
Consequently, feed millers enjoyed lower ingredients cost during October.
Market forecast

Livestock prices should remain weak during November, which is traditionally a lull period for the industry. The broiler sector will be under additional due to the spreading of H7N9 bird flu in the country.
Meanwhile, corn and soymeal prices are expected to fall further, due to ample availability and lacklustre feed demand.
Market monitor

Wen's Group, based in Guangdong province, will be investing RMB100 million in Jiangle County, Fujian to build an ecological poultry base. Using the "company + farmers" model, the base will work with over 500 farmers to produce 8 million commercial broiler chickens and ducks, with the animal manure processed into organic fertilisers.

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