Market Update
· It’s still a mystery; the chicken market never ceases to amaze! From out of nowhere we are seeing bullish technical moves. The technical chart on all poultry items are flashing a very, very STRONG buy signals. I think many buyers are starting to believe the cut backs and the state of supply maybe actually for real!? I think it is.
· Also there is no quick solution to increased production, since the breeder stock has been reduced, so the current industry couldn’t hurt itself (which it would), if it wanted to. How about that? So….if demand patterns increase (which they will) and industry weights hold steady (which they should), then the breast and thigh market could hit all time highs! Which it might, after Easter, when weather is better, BBQ season heats up, and supply holds stable.
· This will be a very interesting summer. Frozen stocks are very limited, which could also contribute to limited supplies.
· Hard to call this year, but volatility will definitely be in the cards.
