China Broiler Market Weekly - CHINA - Prices largely stable in the North but sharply lower in the South, in the week ended Oct 19, say eFeedLink in their Weekly China Broiler report.

1. Price Summary

During the week ending Oct 19, prices of AA broilers were stable in Liaoning province and Shandong province but were sharply lower in Jiangsu province. Prices in Henan province were marginally higher.

Prices of China breed broilers had fallen sharply in Guangdong province and Guangxi Zhuang AR but were stable in Henan and Hebei.

2. Market Analysis

Prices of AA broilers remained firm in Shandong, Liaoning, Sichuan and Henan on the back of lower supplies from breeders. Limited market supply and increased broiler consumption with the cooler weather had led broiler processors to increase their broiler purchases. This helped to keep broiler prices firm in these regions.

Meanwhile, broiler prices in the southern provinces, particularly in Guangdong and Guangxi, were significantly lower. This is especially so for fast (49 days) growth and slow (110 days) growth broilers. Broiler stocks in the South had remained high and coupled with the rise in broiler supplies from the North, prices can only move lower. The rise in broiler consumption with the increasingly cooler weather had not prevented prices from falling.

In addition, broiler breeders were concerned that the bird flu could recur in China, given that poultry stocks in other countries have been affected recently. These broiler breeders were keen to offload their stocks even if they have to incur a loss.

3. Market forecast

In the near term, the pace of decline in broiler prices in southern China is expected to slow down with the continued pick up in consumption. In the north, prices could register some marginal gains in the week ahead.

Source: eFeedLink - 20th October 2005