Chicken Market Update- Week of 7/30

· 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.

Chicken Market Update- Week of 6/11

Market Update

· The chicken crossed the road last week from the stinky mess of the market.

· This week the bleeding slowed on white meat, but accelerated on dark meat.

· Leg meat and thigh meat are now searching for a bottom.

· Overall the market looks negative.

· Wings are the only item that has some stability. Everything else is very shaky.

· Breast meat looks to be forming a bottom, but tenders have a way to fall.

· It looks like the export markets may be putting pressure on demand, which in turn is adding more supply domestically. Not a good recipe considering the domestic market demand is suspect to begin with.

· Hopefully demand will pick up in the next few weeks in support of the 4th of July holiday, otherwise it could be a long and miserable summer for the poultry industry.

Chicken Market Update- Week of 5/28

· We are continuing the poultry roller coaster…………I think I just lost my cookies!

· Getting right to the point…..it sucks! Mainly white meat is in bad shape for this week ship, bnls breast and tenders are leading the charge.

· Tenders are just feeling the heat, but breast meat is just downright nasty. Lack of business and further processing needs are just not there.

· The Memorial Day holiday has messed up further processing because of the long weekend, and lack of any retail volume means a very sick market.

· Most charts from last few years shows the same trend, I guess we just forget year to year, that we see a pull back. This pull back was hard and fast. It should correct some next week, but the formal market on breast meat should go down a few more times this week.

· Wings are still in great shape, an unusual time of the year, but wings too should slow down soon.

· Dark meat is in decent shape, except leg meat. Leg meat is struggling and should… sooner or later effect thigh meat, but we haven’t seen it yet.

· Fresh thigh meat sales are still good.

· On breast meat market : I think this will be the case..EXCEPT we will not see the August and September run up like in 2010, that was an bird weight problem with Tyson,

· I think we should flat line around $1.60 market after a Memorial Day sell off near the $1.50 range, but this is all speculation of course.