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 5/21

· Things are still very rosy in the poultry market. With Memorial Day right around the corner, there is much optimism.

· All white meat is short in supply, from breast meat, to tenders and wings….all is in very heavy demand. The market has advanced in response to that demand.

· Dark meat has also been in the spotlight. Most dark meat demand has been in retail needs; mainly drums, thighs and hindquarters.

· Leg meat has been the one item that has been sluggish.

· Thigh meat volume has been good, but with leg meat sluggish, pricing on thigh meat seems to be staying put.

· Wings have stood out as the biggest demand item on a normally sluggish time of year, although breast meat and tenders seem to be following its seasonal trends, with potentially more upside to come.

The poultry market trends are very bullish

Chicken Market Update- Week of 3/26

· The poultry market is steady and stable for this time of year.

· Normally during Lent season the market can be somewhat volatile, because of slack demand. Cutbacks have helped the situation with lack of supply with the lack of demand.

· Tenders and wings are still tight and wanted.

· Thigh meat is also just as tight from the supply side, but increased pricing has temporarily slowed the demand side. With continued tight supplies, when demand returns, there should be more upside on pricing.

· This is the week of the two’s, so breast meat has lagged some, but pricing seems still fairly stable.

· After Easter, demand should start to increase, higher than normal temperatures (this time of the year) in the SE, NE and Midwest states should spark the BBQ season and help poultry demand.

Chicken Market Update- Week of 3/19

Market Update

· Wings and Tenders are currently nonexistent. A little panic buying is going on right now, but there are a few items which are very hard to find.

· March Madness is helping wings, but should subside over next few weeks. Also, some out front buying is putting pressure on wings.

· Processors are grabbing all tenders.

· Thigh meat is the next item which is becoming scarce, and I mean scarce. If this is an indication for forward months, we all are in big trouble. All dark meat….. bnls and bone in is tight. Expect retailers to feature these items heavily after Easter.

· Breast meat is the only item with a little excess inventory this week, but with the weather improving back east and Easter and Lent season approaching, supplies should tighten up, big time.

· Forecast for poultry remains bullish for this summer, demand should heat up.

Chicken Market Update- Week of 3/12

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.