October 19, 2016
China Broiler Weekly: China breed broiler prices plunge on poor demand (week ended Oct 18, 2016)
An eFeedLink Exclusive
Price summary
Prices were weak.
Market analysis
AA broiler
Slack demand during the long holidays in early October drove AA broiler prices lower. However, after the long break, prices rebounded in several regions amid recovering demand while the supplies of finishing broilers were low. Overall, AA broiler prices increased 1% on average over the past two weeks.
Chick prices were weak due to sluggish buying interest. Nevertheless, with supplies tight, price settled in the range of RMB3.15-3.90/chick.
China breed broiler
Post-festive sales of China breed broiler tumbled, dragging prices tremendously lower by 8% over the past two weeks, falling below RMB8/kg in some regions.
As farmers were reluctant to expand inventories with prices plummeting, prices of day-old chick continued to slide.
Market forecast
Prices of AA broiler should stabilise with the availability of finishing broiler limited due to high releases in September. For China breed broilers, prices are seen weak, but price falls should slow after the recent slump.
RMB=US$0.1483 (October 19)
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