November 29, 2016


China Broiler Weekly: Market continues to underperform (week ended Nov 23, 2016)


An eFeedLink Exclusive


Price summary


Prices slid further.
Market analysis
AA broiler

AA broiler market showed no signs of stabilising from the recent slide as demand for chicken product was sluggish. Slaughterhouses were reluctant to increase stockpiles with the outlook of the market uncertain. However, at 1.7%, the average price fall was moderate compared with the previous week's sharp decline.


Nonetheless, day-old chicks prices strengthened, albeit modestly, to RMB2.15-3.25/kg while AA broiler farmers make preparations for January's pre-Chinese New Year market.


China breed broiler

Prices of China breed broiler tumbled 3.4% as supplies increase over the week while demand softened. In southern China, prices plummeted a whopping 12% on poor sales.


Chick prices remained at low levels as farmers withheld buying with infection rates on the rise amid falling weather temperatures.


Market forecast

A decrease in release volume will help AA boiler prices to rebound from current low levels. However, with demand for chicken products slack, it remains uncertain whether the AA broiler market will recover steadily.
China breed broiler prices will remain soft under the pressure of lacklustre sales.
RMB=US$0.1448 (Nov 29)

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