Broiler meat production is set to reach an all-time high next year in Brazil with export demand increasing. Cash broiler chicken is $20 from their 52-week high in June, and only $6 from its low last November.
The USDA’s Brasilia-bureau made this forecast of record exports and production with demand reportedly from China and the European Union. Broiler chicken meat exports from that country are expected to hit a whopping 4.4M tons next year.
“The growth in exports will likely be driven by higher world demand for the Brazilian products, mostly from China, the European Union and new markets recently opened,” said an USDA official, from the Brasilia-bureau in Brazil, sharing their fundamental assessment of the broiler chicken futures market. The USDA added, “In the past 12 months, the average cost of broiler production increased by 34%, basically influenced by the prices of corn and soybean meal.”
The current trend for broiler chicken is down from the June high. With the current down-trend in corn and soymeal futures, we could probably see continued downside for broiler chickens toward the November 52-week low.
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