China Broiler Weekly: Post-festive AA broiler prices tumble to new lows (week ended Oct 14, 2015)
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Price summary
Prices continued to drop.
Market analysis
AA broiler market failed to strengthen after the long holidays. Prices tumbled another 6% over the past two weeks, breaking new historic lows.
Broiler demand is traditionally weak after the long October holidays. Nonetheless, this year’s broiler sales, which started to weaken even before the holidays due to China’s sluggish economy, was far below expectations.
Day-old chick prices rebounded initially, but slid later amid slack flock expansion demand. However, compared with pre-festive prices, day-old chicks were higher in the range of RMB0.50-1/bird.
China breed broiler
Prices of China breed broiler plunged as well in most regions, except Guangdong. On average, prices dipped 6% during the period in review. Consequently, chick prices softened amid slack buying interest.
Market forecast
Weak demand will continue to exert pressure on the broiler market. However, the downward potential of AA broiler market will be limited with record low prices more than 30% below past three year’s average. China breed broiler prices, which are around the average level, are more likely to fall further.
RMB=US$0.1576 (Oct 16)
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