China Broiler Weekly: Delivery disruption decimates supply, strengthens prices (week ended Jul 27, 2016)
An eFeedLink Exclusive
Prices moved higher.
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,.
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.
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)
eFeedLink offers monthly China hog and poultry market trackers, including analyses and on-the-ground information from Guangxi, Guangdong, Hunan, Hubei, Sichuan, Jiangsu, Henan, Shandong, Hebei and the whole of China. These provinces cover at least 70% of the total hog, poultry and related feed production or consumption in China. For more information, visit: /eFLResearch
All rights reserved. No part of the report may be reproduced without permission from eFeedLink.