July 29, 2016


China Broiler Weekly: Delivery disruption decimates supply, strengthens prices (week ended Jul 27, 2016)


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Price summary


Prices moved higher.


Market analysis


AA broiler

Affected by heavy rains in several regions of China, releases of AA broiler dwindled, pushing prices higher. However, prices consolidated lower by end of the week as supplies returned to normal, hence limiting the weekly gain to slightly over 2%.


As farmers continued to expand inventories in preparation for the market prior to the Mooncake Festival, chick prices strengthened prominently to RMB2.60-3.50/bird,.


China breed broiler    

Despite weak demand for chicken, prices of China breed broiler rose 2% over the week due to tight availability.


Nonetheless, prices of day-old chicks remained weak as farmers withheld purchases with prices of broilers low and the costs of feed on the rise.


Market forecast

Supplies of broilers should increase as storms and floods are expected to subside gradually in China. The upward scope of broiler prices will therefore be limited with demand tepid.
The preparation for pre-festive market will end soon, which means that the sales of AA chicks will slow down, exerting pressure on the prices.
RMB=US$0.1504 (Jul 29)


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