Market Update
· Weak…most chicken meat and parts are weak, except not wings and tenders. Demand is very, very sluggish.
· Breast meat and thigh meat are both showing signs of weakness.
· Some of the bone in items associated with the bnls parts are at least steady, but jumbo boneless white and dark meat are not in good shape.
· Wings are the star, but they are even starting to see resistance.
· Cut backs are still desperately needed, but with weak demand, not sure how much they will help in the near term.
· Another chicken producers bites the dust; a smaller company called Cagle’s filed chapter 11 last Thursday. They will try to cut debt and stay in business, but the outlook for poultry is still dim for the next 6-9 months. This industry is in turmoil.