July 18, 2016
China Broiler Weekly: AA broiler prices flat as farmers hasten releases (week ended Jul 13, 2016)
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Price summary
Market analysis
AA broiler
Although the quantity of finishing broiler decreased, farmers in some regions hastened the releases of pre-mature chicken amid fears that mortality rates would climb due to severe floods. Prices of AA broiler were therefore mostly stable, inching up 0.54% on average over the week.
Chick price rebounded RMB0.20-0.50/bird to RMB1.80-2.90/bird, as farmers expanded inventories in preparation for pre-Mooncake Festival demand.
China breed broiler
The availability of China breed broiler tightened in the southern parts of the country, as deliveries were delayed by floods, lifting prices significantly as a result.
Nonetheless, ample supplies kept prices weak in the north, hence limiting the average price hikes to 2.7%.
Chick prices were soft amid waning demand, as the preparation for August and September markets have ended.
Market forecast
In the southern and eastern regions of China, where deliveries of chicken are hampered by floods, prices of broilers should stay firm. However, sharp rise in prices are unlikely with demand fundamentally soft.
Prices of AA chicks will remain strong as farmers build inventories in preparation for the pre-festive market between late August and September. However, slack demand for native breed chicks will hold prices flat.
RMB=US$0.1494 (Jul 18)
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