China Broiler Market Weekly - CHINA - In this weeks broiler report, eFeedLink say that prices of AA broilers in China have shown signs of sluggishness during the week ending Sep 14.

Market analysis

The following factors were seen to have restrained the upside in prices:

• Breeders and broiler processing enterprises had been upbeat about market demand for broilers in the run up to the Mid-Autumn Festival (which falls on Sep 18). However, broilers supply has far exceeded demand as farmers released large stocks of broilers into the market, thus putting a cap on upside in prices.
  
  

• In the earlier period, farmers who had maintained a high poultry inventory have also released large stocks of broilers into the market, thus resulting in the current excess supplies of AA broilers. With supply outstripping demand, AA broiler prices in Henan province have fallen in the past week. Despite marginally higher prices in most regions of Shandong province, prices in some regions of the province have also declined. In Liaoning province, the occurrence of floods in the earlier period has affected the market entry of broilers but prices have only risen marginally. In typhoon-hit Jiangsu province, lower market supply of broilers has led to higher AA broiler prices.

Of late, cooler temperatures had led to an increase in the consumption of China breed broilers. Meanwhile, breeders who hoped to make up for their lower profits earlier, had held on to their stocks of broilers in anticipation of better prices, thus contributing to the more stable prices in recent days. In some provinces such as Jiangsu, Guangxi and Guangdong, consumers' growing preference for China breed broilers has driven up prices of these broilers.

Market Forecast

As broiler supply is expected exceed demand, the upside in the prices of AA broilers and China breed broilers is seen limited.

Source: eFeedLink - 15th September 2005