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.

Poultry Market Update for the week of 10/17

Market Update

· The poultry market keeps chugging along. Overall, it seems like white meat is in better shape. Breast meat is not being discounted as it was last few weeks, and overall availability is less.

· Tenders and B/I breast also seem to be in better shape. Cut backs and bird weights seem to finally be working their way through the system.

· Bone in dark meat seems o.k., but thigh and leg meat seem weaker.

· Frozen thigh meat is definitely more available, while fresh thigh meat has slowed down.

· I am surprised that the formal market on both has not come down yet, but it should very soon.

· Wings are hot..by far the hottest item out there. Still going up most days.

· More cut backs are coming…last week year over year chick and egg placements were down 10%.

· The industry may finally be figuring it out!? Hopefully it’s not too late, to salvage a little profitability for this year? But I doubt it.

Poultry Market Update for the week of 10/10

Market Update

· All is quiet in the poultry industry. There is optimism that further cut backs are still on the way to help breast meat pricing, but we’re still seeing adequate to a little excessive inventory.

· Pricing still very subpar considering corn around $6.00. corn has dropped from $7.50, but still a long way from profitability even at $6.00. Most poultry producers now have their hopes pinned on a mid November sustain cut back target date. They are hoping most cut backs will be in full force by then, with year over year cut backs equating to 9-10% less over all birds and weight similar to year prior. If this truly is the case- (which these bozos don’t always tell the truth) - the pricing should start moving up?! We shall see.

· Most items are steady this week, with trade levels on breast meat a little higher than last week.

· Dark meat seems to have slowed down, and I still expect the formal market on thigh meat to drop soon.

· Wings still the hot item, and everything else fairly steady.

· First of the month retail ads seem less prevalent, but inventories and export market keep inventories in check.

Poultry Market Update for the week of 9/26

· WOW! white meat is STINKY with a capital ‘S’.

· Breast meat and somewhat tenders are very weak this week’s ship.

· Wings are the ONLY item that is good, and good is an understatement. They are actually HOT!

· Dark meat seems steady, but hard to believe that thigh meat can stay that way considering breast meat is so weak? Most likely going into October, thigh meat should back off some.

· Although some interesting news is surfacing with China, and how the U.S. is seeking a fair trade with US exports into China. This will take a few months to resolve, but should help dark meat immensely.

· Corn is still relatively high and loses continue to mount the poultry industry, something will give in the next couple of months, most likely more sustained cutbacks and more bankruptcies should control the supply chain for higher prices soon…the sooner the better.

Poultry Market Update for the week of 9/5

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 5^th, 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.