Price Summary

Prices of AA broilers continued to rise, with those in Sichuan and Jiangsu provinces making sharper gains while those in Hebei and Shandong provinces were slightly higher.

Market analysis

AA broiler
In Sichuan, AA broiler prices were higher on the back of reduced supplies and increased demand from buyers.

High summer heat had led to more incidences of broiler deaths in Henan, resulting in low supplies to local markets there.

AA broiler prices were higher in Shandong on low supplies. Continued gains in prices of AA broilers in neighbouring Jiangsu and Henan had also helped prices to rise in Shandong.

In eastern China's Jiangsu province, swine fever outbreaks had resulted in the deaths of hogs in many regions. Reduced pork supplies had fuelled higher consumer demand for broilers. The increase in broiler deliveries to Shanghai had also bolstered prices in the province.

China breed broiler
In Guangxi, demand for broilers had declined under the current summer heat. The hot weather had also resulted in traders making fewer deliveries to other provinces. With traders slower in taking up supplies, prices had slackened. Prices of slow growth (110 days) broiler registered a sharp decline of RMB0.50/kg.

In Guangdong, demand for broilers was sluggish as the high temperatures prompted some consumers to reduce meat consumption. However, prices did not fall much as the slow recovery in broiler production there has resulted in low market supplies.

Market forecast

In week ahead, prices of AA broiler are likely to rise as demand is seen to continue to exceed supply. For China breed broilers, a low inventory level contra by slowing demand from consumers in the warmer regions of southern China is likely to keep prices range-bound.

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