China Broiler Weekly - CHINA - Broiler prices in China were mostly stable in the week ending Aug 3, say eFeedLink in their Weekly China Broiler report.

2. Market analysis

Shandong and Liaoning
Temperatures in Liaoning province were relatively lower than the southern regions. The number of AA broilers released into the market has declined, while transportation difficulties have hindered deliveries from other provinces. Thus, AA broiler prices in Liaoning continued to rise marginally in the past week.

Warmer weather and outbreak of livestock diseases have caused supply of AA broilers in Shandong province to fall in recent days. However, prices were generally stable due to a balanced demand and supply situation in the market.

Henan

In Henan province, prices of AA broilers continued to dip in recent days. The mortality rate of broilers has increased in some parts of the province due to the current outbreak of intestinal disease. Rainstorms in Henan also hindered broiler deliveries to Hebei province. As demand remained generally sluggish, prices moved lower in the past week.

Faced with competition from AA broilers, fast (49 days) growth broiler prices fell marginally. Prices of medium (70 days) growth broilers were generally stable in the past week.

Guangdong and Guangxi

Broiler prices in Guangdong stabilised in the past week, as the impact of floodwaters on broilers in earlier period has gradually eased. Cooler temperatures in recent days were favourable to broilers' growth and have also led to increased consumption. Farmers chose to adopt a wait-and-see approach and held back on releasing broilers into the market. With a balanced supply and demand situation, prices of broilers were generally stable.

Broiler prices in Guangxi province remained generally stable in the past week. With the high summer temperatures, broilers have grown increasingly irritable in the heat. The warm weather has also led to a higher incidence of intestinal disease as well as an increase in the number of broilers being released into the market. Furthermore, lower prices of pork and duck meat in recent days has caused broiler consumption to fall. Thus, broiler prices generally have not risen as expected.

3. Market forecast

Concluding, analysts expected near-term broiler prices to remain generally stable in Guangdong, Shandong, Henan and Guangxi. Prices were seen to rise marginally in Liaoning.

Source: eFeedLink - 4th August 2005