Price Summary

AA broiler prices were up in Henan, Shandong, Liaoning and Jiangsu, but were slightly lower in Hebei and Sichuan.

Market analysis

AA broiler
In Sichuan, supplies of AA broiler were lower. Deliveries of frozen chicken to the province had declined as traders had moved their supplies to other provinces where prices were higher. This had eased some broiler inventory in the province.

In Henan, reduced supplies had contributed to higher prices. In neighbouring Shandong, tight supplies from broiler farmers had also resulted in some gain in prices.

Compared with the previous week, prices of AA broilers registered sharper gains in Jiangsu on the back of low supplies. Demand was also higher as consumers buy more meat to celebrate a folklore festival which falls on the seventh day of the seventh month in the lunar calendar (July 31 on the Georgian calendar this year).

China breed broiler
In Guangxi Zhuang region, China breed broiler prices were significantly higher. Earlier, farmers there had made fewer poultry replenishment. Thus, most do not have sufficient supplies to offer buyers. Meanwhile, lower summer temperatures and rainy weather triggered by typhoon "Kaemi" had increased consumers' appetite for meat. Demand was also higher as buyers stocked up for another folklore Hungry Ghost Festival, which falls on Aug 8 in the Georgian calendar this year.

Stronger broiler demand has also pushed up prices in Guangdong. Prices of China breeds broilers have essentially returned to pre-bird flu levels. Poultry farmers were mostly able to make some profits.

Market forecast

Analysts expect broiler prices in China to move higher on the back of increased demand in the coming week. Poultry replenishment activities by farmers are also seen to gather more pace.

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