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11 October 2024

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SSI Surveillance: Poultry Mid-Week (10 October 2024)

  • In 02 - 08 Oct 2024, avg. broiler prices rose to ~IDR 18,688/kg (+8.3% WoW/-0.2% MoM/+7.8% YTD). Meanwhile, DOC fell to IDR 4,325 (-11.4% WoW/-24.8% MoM/-38.2 YTD) mainly due to oversupply, particularly in Java.
  • For raw materials, domestic corn prices slightly declined -0.6% WoW and SBM prices dropped -2.1% WoW, with weekly average of USD 330/t and YTD average of USD 345/t (YTD: -16.3%) driven mainly by accelerated soybean planting pace in Brazil and Argentina, increasing global supply.
  • Looking ahead, we anticipate further increases in raw material prices, driven by rainy season and potential impact of La Nina. In the sector, JPFA and MAIN have the most attractive valuations on performance support due to voluntary culling and favorable government policies, including the free lunch program, June-24 price relaxation, and lower GPS import quotas for 2024 onwards.

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Poultry Weekly_08102024

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