Amid Higher Feed Costs, Poultry Production Makes Record High in Brazil

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. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Chinese Meat Demand Boosts Chicken Prices

The quest for protein sources in China have shifted from beef, to pork, and now reportedly to chicken from foreign sources to keep pace with their poultry demand. Chicken (spot) prices have been trading near $1.115 per pound which is down about .045c from just last year at this time when prices were at a multi-year high at the Georgia docks. A year and a half ago, China banned the imports of white broiler chicken meat from the US due to bird-flu concerns – the US providing 90% of China’s supply. China then turned to France for its chicken meat imports, but bird-flu concerns reportedly halted trade with that country and then turned to New Zealand and most recently Thailand. Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, shared his fundamental view of the chicken broiler market by stating, “Chicken prices in Thailand are said to be up a significant 7% in over the past week due to China’s tender.” Plotkin adds, “This pick-up in demand is most likely a reaction attributed to China’s reported 20% supply reduction due to breeding stock trade restrictions.” The trend for chicken prices have been up steadily for the past four years from .86c per pound in April 2011 until June 2015 – topping out at $1.16 wholesale. Since this time last year, chicken prices have retreated back to $1.12 where they are today. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS...