August 10, 2016
China Broiler Weekly: Substantial price rebound after farmers clear excess stocks (week ended Aug 10, 2016)
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Prices increased prominently.
AA broiler rose 4% over the week after farmers have released excess stocks, paring the previous week’s losses. Nonetheless, soft prices of chicken products, particularly those of chicken breast, limited the price hikes.
Demand for AA chicks weakened after the first week of August as the preparation for the pre-October holiday market ended. Chick prices were therefore softer in the range of RMB2.55-3.30/bird.
China breed broiler
As supplies of China breed broiler dropped steeply in the eastern region, prices surged a whopping 23%. Together with the price rebound in most other regions, this lifted the average prices of native broiler by a tremendous 8%.
Chick prices remained weak, however, as farmers were reluctant to expand flocks.
The demand for chicken products should improve, albeit gradually, as China prepares for the celebration of the Mooncake Festival towards mid–August. Prices are projected to rise moderately in the coming period.
Nevertheless, chick prices will stay soft as farmers withhold the buying of day-old chicks that will reach finishing weight during October, a period where the demand for livestock product is at its weakest.
RMB=US$0.1506 (Aug 10)
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