China Broiler Weekly: AA broiler soars on tight availability; China broiler market weakens (week ended Mar 15, 2017)
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With supplies tight due to high mortality losses, prices of AA broiler continued to surge, albeit at a slower pace. On average, prices increased 15% over the week.
After chick prices rose tremendously in the previous week, AA broiler farms held back purchases. Prices consolidated lower by RMB0.10-0.30/bird, settling in the range of RMB1.10-1.50/bird.
Native broiler market remained unstable. After rising over the past two weeks, prices slid 0.72% during the week in review. Although the availability of China breed broiler was tight, poor demand limited the upward scope of the market.
Chick prices weakened while farmers who were wary of the raging epidemic refused to build inventories.
As inventories of slaughterhouses pile up amid slow demand for chicken products, sales of AA broiler are expected to slow. However, with broiler and chick supplies tight, AA broiler prices should trend higher in the longer term.
Meanwhile, China breed broiler market will stay soft as consumers stay away from live chicken.
RMB=US$0.1451 (Mar 16)
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