China Broiler Market Weekly - CHINA - In this weeks broiler report, eFeedLink say that AA broiler prices in Liaoning and Shandong were generally lower in the week ending Sep 28.

Market analysis

As for China breed broilers, the price fall was marginal in Guangxi and significantly higher and more widespread in Guangdong, Jiangsu and Henan.

Broiler prices had weakened in China with the approach of the National Day holidays (first week of Oct). The rise in AA broiler prices prior to the Mid Autumn Festival (Sep 18) have led breeders to offload more of their broiler stocks. Broiler processing enterprises have also increased their supplies to the market. The higher supply was not fully absorbed in view of the current weak demand, thus driving down prices in the week under review.

The fall in the prices of China breed broilers had gathered pace with the less than expected consumption of live broilers during the Mid Autumn Festival. Then, breeders were actively offloading their broilers for fear that broiler prices would not pick up in the longer term. In recent days, bad weather conditions in some provinces such as Henan as well as the high oil costs, which have affected cross-province deliveries, causing prices to fall.

The fall in broiler prices in Guangxi province was relatively more moderate. The offloading of large broiler stocks during the Mid Autumn Festival has reduced farm inventory of broilers. Against this backdrop, many breeders who expected higher broiler prices during the upcoming National Day holidays period had held on to their broiler stocks, thereby curtailing the decline in broiler prices in the region.

Market Forecast

Broiler prices are likely to fall further in the few days before the National Day holidays.

Source: eFeedLink - 30th September 2005