China Broiler Market Weekly - CHINA - Prices generally sluggish; near-term marginal gains likely with increased consumption (week ended Sep 7, 2005), reports eFeedLink in their weekly broiler report.

Prices of AA broilers in China were generally sluggish during the week in review. China's breeders who had earlier anticipated buoyant demand for AA broilers prior to the Mid-Autumn festive season (Sep 18) had raised their farm inventory. This has resulted in current supply of AA broilers outstripping demand, thus keeping in check any upside in prices.

Meanwhile, as many broiler processing enterprises in Liaoning province could not procure sufficient stocks to meet production needs despite the resumption of normal transport services, broilers prices there were thus being driven up. In Shandong and Henan provinces, broiler prices were stable while in Jiangsu province, prices had fallen.

Consumption of China breed broilers has improved with the onset of cooler weather but market supplies have only increased slightly. Many broiler breeders are hoping that their lower profit in the earlier period would be compensated if they release their stocks for sale only during the forthcoming festive period, where prices are widely expected to rise.

Nevertheless, broiler prices had remained stable in recent days with the somewhat balanced supply and demand condition. Except in Jiangsu province, where a fall in export volume of China breed broilers has led to lower prices, broiler prices in Henan, Guangxi and Guangdong provinces were relatively stable with minor fluctuations.

Concluding, other than in Guangdong and Guangxi provinces, analysts expected prices of AA broilers and China breed broilers to rise marginally with increased consumption in the near term.

Source: eFeedLink - 8th September 2005