China Broiler Weekly

CHINA - In this weeks China Broiler Weekly, eFeedLink report that prices of China breed broilers were largely lower in the week ending Jun 28.

30 June 2006

3 minute read

China Broiler Weekly - CHINA - In this weeks China Broiler Weekly, eFeedLink report that prices of China breed broilers were largely lower in the week ending Jun 28.

Price Summary

As for AA broiler, prices have continued the previous week's gains mainly on reduced supplies.

Market analysis

AA broiler

Key characteristics of China's AA broiler market during the week in review were as follows:

Lower farm broiler inventories had led to reduced market supplies, which helped to lift AA broiler prices in Sichuan province by RMB0.15/kg from the week before. AA broiler supplies in the province are not expected to increase further in the near term.
In Henan province, AA broiler prices rose RMB0.55/kg on lower supplies.
Improved hog prices had helped AA broiler prices in Liaoning province to rise marginally.
Higher temperatures and more rainfall had affected broiler deliveries from Jiangsu province to other regions of China. However, AA broiler prices there still managed some gains on lower supplies.

China breed broiler

Key characteristics of China breed broiler market were as follows:

In Guangxi Zhuang Region, market supplies of China breed broiler had fallen compared with a week ago while prices had started to recover from the sharper falls earlier. Except for prices of fast growth (49 days) broilers, which had stayed low, those of slow growth (110 days) and medium growth (70 days) broilers have picked up slightly.
Warmer weather in Guangdong province had affected broiler consumption. With broiler deliveries to Hong Kong still being blocked by the territory's three-week ban of mainland China's poultry products, broiler supplies in the province had continued to rise. Broiler producers' profit was affected and many are operating below break-even point.
In Sichuan province, many poultry sellers had signed contracts to supply broilers to a large poultry company--the Wen's Group. This had affected broiler prices in some regions of the province.

Market forecast

Overall, China's broiler inventories are expected to stay at current levels in the near term but higher summer temperature across the country may affect meat consumption.

In the week ahead, prices of AA broilers are expected to make more gains while those of China breed broilers may continue to weaken slightly.