· Corn and soy prices are the main topic of discussion the last few weeks. These are the components of chicken feed. The Midwest drought has brought the feed cost to all-time highs, most protein producers are currently liquidating herds and flocks now, as feed cost has risen.
· At the poultry level, the producers are working six days a week to bring bird weights down now, as the feed conversion later on will be too expensive to maintain.
· So now a jumbo bird takes 62 days from start to finish, they begun to lower weights and feed only 58-59 days going forward. This will cause extra meat on the market this week and next, but after that the shorter feed cycle will lower weights 5-8% going forward. This should help lower supply and feed cost into August.
· After that, they better start thinking of cutting back head count, otherwise a sea of red will be waiting for them.
· Most items are in relative good shape and actually short on wings and tenders. Bnls breast meat seems to be the most troublesome currently, but after bird weights are lowered, it too should tighten up.
· Most dark meat is balanced, with leg and thigh meat in higher demand.
