Halting transport in and out of Hubei has “basically paralysed” shipments of animal feed supplies and the raw materials needed to make them, the local poultry association said in letters, seen by Bloomberg, asking state producers to deliver supplies urgently.
Most farms in the province will likely run out of feed by the end of the week, said a separate letter from the provincial agricultural department seen by Bloomberg. Hubei consumes about 1,800 tons of corn and 1,200 tons of soymeal a day as animal feed, and may see a 600,000-ton deficit of the grains and oilseeds by the end of next month, the letters said.
Egg futures on China’s Dalian Commodity Exchange are set to resume trading on Feb. 3 after Beijing extended the Lunar New Year break and delayed the country’s financial markets from opening. Hubei province is the country’s 6th-biggest poultry producer and accounts for 5% of China’s annual egg output.
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