Why is the broiler market not optimistic? Analysis of three major reasons

Three major factors are weighing on the broiler market, making a recovery difficult. After bottoming out and rebounding in early in the month, the broiler market in the Zhejiang region opened high and moved lower this week, but affected by factors such as weather and epidemic risks, the market fell back after rising, and the broiler price curve showed a fluctuating downward trend. The comprehensive average price of main broiler products was 5.2 yuan/jin, up 6.1 month-on-month.

A comprehensive analysis shows that the following three major factors caused last week's broiler price fluctuations and adjustments and repeated sales volumes:

First, in autumn and winter the growth rate of broilers increases, and all varieties fluctuated near the cost line. Under the premise that the future market was unclear, all parties focused their sales strategies on reducing body weight and reducing age in days, and were not highly motivated to stabilize prices or attempt price increases.

Second, affected by rainy weather, with continuous rain in the middle of the week and a sharp drop in temperature in early winter, consumers' trips out and willingness to buy declined to varying degrees on rainy days. The broiler transaction volume at terminal farmers' markets dropped significantly, and the attendance rate and stockpiling volume of wholesale and retail customers both declined compared with the beginning of the week.

Third, with frequent alternation of hot and cold weather, the possibility of disease outbreaks increased, and the possibility of triggering a new round of market controls rose greatly. Broiler farmers and wholesale and retail customers all tried to keep inventory as low as possible to reduce epidemic risks and business losses. Broiler circulation channels were artificially blocked at multiple levels, lacking support from basic sales volume, and there was insufficient momentum for prices to rise high and remain stable at high levels.

Overall, under conditions of an unclear market and prices fluctuating close to the cost line. Researchers from Xinmu Network expect that the sentiment for early slaughter among all parties will be stronger than in the earlier period; and from the consumption side, with unfavorable weather this week and a lack of positive consumption factors, consumption volume will still remain lukewarm, and sales expansion can only rely on weekend consumption. Therefore, this week's broiler market will follow last week's chicken price trend and will find it difficult to improve before the weekend. This week's market is expected to be mainly consolidating at a low level. The amount of supply will determine the extent of the decline in chicken prices in the future market and the time span of chicken price consolidation during the sluggish market period.