CHICKEN TRENDS

Farmer's Report

Chicken Trends - January 22, 2021

Poultry market information is from the week of January 18th, 2021.

According to reports, plants continue to work through labor and supply issues, as well as pressure on supply from ongoing national promotional activity in the boneless breast category. Urner Barry reports that select and medium boneless breasts are at 52-week highs, and that all wing categories are at record highs.

This week, movement in the poultry markets was brisk in most categories. All sizes of wings experienced price increases. Analysts expect a flat to upward trend in the wing categories. The small breast meat market remained flat. The medium and jumbo boneless breast category incurred price increases. The jumbo breast meat market increased as promotional demand gained momentum. The tender markets followed the same trend as wings and breast meat with price increases. Analysts are anticipating a flat to upward movement in the jumbo tender category, as Further Processors have stepped back into this market. Analysts are forecasting the dark meat categories to rise in the first quarter of 2021 due to an increase in export and domestic demand.

The USDA did not report the Broiler Hatchery this week due, to the MLK Holiday on Monday. It will resume on next week’s report. The below statistics are from the week of 1/11/2021.

Broiler-Type Eggs Set in the United States Down 1%

Hatcheries in the United States weekly program set 235 million eggs in incubators during the week ending January 9th, 2021, down 1% from a year ago. Average hatchability for chicks hatched during the week in the United States was 81.0 percent. Average hatchability is calculated by dividing chicks hatched during the week by eggs set three weeks earlier.

Broiler-Type Chicks Placed in the United States Slightly Down

Broiler growers in the United States weekly program placed 189 million chicks for meat production for the week ending January 9th, 2021, down slightly from a year ago. Cumulative placements for the weeks ending January 4, 2020 through January 9th, 2021 for the United States was 9.60 billion. Cumulative placements were down 1% from the same period a year earlier.

WHOLE CHICKEN & CUT-UP PARTS

Analysts report that small bird supply versus demand may be stabilizing, as prices moved up slightly. The market for larger-size whole birds and WOGs is in a balanced to tight position, according to analysts.

BONELESS, SKINLESS BREASTS & CHICKEN TENDERLOINS

Small boneless breast markets were unchanged. The medium and jumbo boneless breast markets increased substantially. Demand for medium and jumbo boneless breasts is supported by Further Processors as they build inventories to fill promotional commitments, according to analysts. Spot load offerings for jumbo boneless breasts are minimal this week, but discounting has not materialized. Analysts expect the medium and jumbo breast meat markets to trend flat to upward in the near term.

This week, the small and jumbo tender markets increased. Analysts expect these markets to trend flat to upward in the near term. Spot load offerings of small or jumbo tenders have not surfaced this week.

WINGS

This week, all sizes of wings saw price increases. Analysts predict these markets will remain flat to higher, with an increase in demand due to the football season demand, low freezer inventories and foodservice demand. All sizes of fresh or frozen wing spot product are very difficult to uncover, and when the product is revealed, the offers are at premium prices, according to analysts.

BONELESS, SKINLESS THIGHS

The boneless, skinless thigh meat market increased again this week. Spot offerings of boneless thighs have been minimal. According to analysts, the export and domestic markets are active and driving this market up. Analysts expect this market to trend flat to upward in the near term.

The data contained in the Farmer’s Report is provided for informational purposes only, is not tailored to your specific purchasing needs, and is not intended as a substitute for any other publicly-available market data or information. The Farmer’s Report is compiled from the last-received market data provided by the United States Department of Agriculture (USDA) and/or other market sources, and is subject to change without notice. Nothing herein is the opinion of US Foods®. US Foods neither assumes any legal liability nor makes any warranty or guaranty, either express or implied, regarding the completeness, accuracy or usefulness of this information.