China Broiler Market Weekly - CHINA - In this weeks China Broiler Market Weekly, eFeedLink report that Broiler prices in Guangdong province and Guangxi Zhuang Region were sharply lower in the week ending Apr 12. In other regions, broilers prices were mixed.

Market analysis

Prices of fast growth (49 days) broilers were sharply lower in Guangdong province and Guangxi Zhuang Region on excess supplies. Fast growth broiler supplies had risen significantly after sellers started to release more stocks during the Qingming Festival period (a traditional tomb sweeping day which falls on Apr 5 this year).

However, an oversupplied situation soon took shape there, which was further compounded by the much lower broiler deliveries to Hong Kong compared with the pre-bird flu period. As supplies had outstripped demand, prices were thus driven lower. Meanwhile, prices of slow- and medium-growth broiler were stable on minimal changes in supplies.

Broiler prices were mixed in other provinces. In certain regions of Liaoning province, wholesale AA broiler prices were slightly higher. Most broiler processors there have contractual agreements with farms to supply broilers at fixed prices, which are higher than those offered by backyard farmers.

Wholesale prices of Type-817 broiler (a type of mixed breed broilers) in Shandong province were slightly higher. In Henan province, broiler prices were also marginally higher compared with the previous week. During the week in review, some price fluctuations in these regions had occurred mainly was due to shifts in market supplies and procurement by broiler processors.

Market forecast

Near-term broiler prices in China are seen to be generally stable. In northern China, broiler breeds that are lower in supplies are likely to see some upward price movements. Broiler prices in Guangdong and Guangxi are expected to stabilise or make slight gains as the current near-record low prices would discourage sellers from increasing supplies.

Source: eFeedLink - 13th April 2006