Price Summary

Prices of AA broilers were higher in Jiangsu, Henan, Shandong and Hebei earlier but ended mostly unchanged after giving up these early gains.

Market analysis

Broiler prices were higher in Sichuan on account of the following:

Higher hog prices in the province, rising by an average of RMB0.20/kg, had to some extent provide support for broiler prices.

Feed millers in the province have been seeking overdue payments from farmers. This, together with earlier losses, has forced some farmers to quit broiler production, thus causing a reduction in supplies.

Bigger poultry farms there were also inclined towards reducing broiler inventories in the past two months, which also contributed to the lower supplies. Prices of China breed broilers remained largely stable in Guangdong province and Guangxi Zhuang region. However, prices of slow growth (110 days) broilers in Guangxi have fallen significantly during the week in review on excess supplies.

Market forecast

Although consumption is likely to slow down in June, broiler prices in China are not expected to fall as market supplies are not expected to increase soon.

In the week ahead, prices of China breed broilers are expected to remain steady. Buoyed by higher prices in Jiangsu, Henan, Shandong and Hebei provinces, prices of AA broilers are seen to make more gains in the other provinces.