Happy Wednesday! It’s the last day of August, and that means tomorrow begins National Chicken Month! The holiday, which seems to have no historical background whatsoever, is sponsored by (surprise!) The National Chicken Council! How does one celebrate this month, besides eating a ton of chicken? Well, you can start with sending an ecard to your favorite chicken buyer. After that, learn about Mike, the Headless chicken, who lived for 18 months without a head! And remember to brush up on your chicken trivia, and learn to properly do the chicken dance.
Have a wonderful rest of your week and a great Labor Day. We will be closed on Monday, September 5th, thus we will be on a holiday delivery schedule. For more information, please see our website.
Market Update
· Corn, Corn, Corn….it’s all about feed cost. Corn and soy meal, which is the input to poultry, beef, and pork is on the rise. New crop reports are showing reduced crop harvest anticipated for this year crops. Corn and soy meal are expected to hit new highs in 2012…that is not good news for the poultry industry. The poultry industry has not even been able to digest $6.00 corn, let along $8-$9 corn!?!
· Pain and misery for the next 12 months with higher poultry cost is in the cards; not sure if the poultry industry will get to profitability in the next 12 months.
· It maybe bankruptcies that help this industry get to break even.
· Something will have to give here in next 3-4 months for this industry to raise prices and recapture their input cost. Breast meat is a little sluggish compared to last week; Labor day and Hurricanes creating some issues.
· Tenders and wings are still hot.
· Dark meat is steady.
· The cut backs are still happening. Year over year, we are seeing 6-7% declines, I think it will take 10-12% year over year, before the industry will get to profitability………….we won’t see that for 6-9 months.
