December 21, 2016
China Broiler Weekly: Prices rebound amid pre-festive buying (week ended December 14, 2016)
An eFeedLink Exclusive
Prices were stable to higher.
Prices of AA broiler increased in most regions amid climbing demand as the country prepared for New Year Day celebration. Slaughterhouses restocked inventories which were running low, supporting prices to rise by 1.2% on average.
Demand for day-old chicks tumbled as the inventory building for pre-Chinese New Year market in January ended. Consequently, prices of chicks plummeted RMB0.80-1.45/bird to the range of RMB1.10-2.10/bird over the week.
China breed broiler
Demand for native broiler was weak in the north, dragging prices lower by about 2%. However, strong demand in the south lifted prices by over 6%. On average, prices of China breed broiler rose by 2.7% during the period in review.
Nonetheless, chick prices stayed soft amid poor buying interest.
Broiler demand should stay stable with the support of pre-New Year preparation. However, slaughterhouses, which are on risk-off mode due to low confidence in the livestock market, are unlikely to stockpile high inventories of chicken. This will limit the price hikes of broiler in conjunction with ample availability.
As for the chick market, prices are seen weak as farmers will not be keen to build inventories of broilers that will reach finishing weight after the Chinese New Year.
RMB=US$0.1439 (Dec 21)
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