Chicken Trends - June 14, 2019
Small, medium and jumbo wings were flat during the week of June 10, 2019. Supply has not elevated yet, which has minimized the availability of spot loads, as well as maintained balanced pricing. The small boneless breast markets were flat during the week of June 10, 2019, as supply is still suppressed in the small bird market. We should see this trend continue in the near term. The jumbo breast market was flat, with the medium market moving down slightly. Jumbo tenders pricing was unchanged, as this market is currently in a balanced to tight position, without any spot offerings being discovered. The select/small tender markets were flat, following the same trend as the jumbo tenders. This category remains short of supply, and well-supported by the ongoing lack of supply and the YTD headcount deficit in the small bird arena.
Export demand on boneless breast and dark meat continues to be at better than normal levels, trending flat to upward. The bone-in thigh market was flat the week of June 10, 2019. As export demand gains ground, we can expect slight incremental increases in all dark meat categories in the near term. Whole birds/WOG pricing continues to show a slight increase. We should expect a flat to slightly upward trend for the near term.
BROILER-TYPE EGGS SET IN THE UNITED STATES UP 1%
Hatcheries in the United States weekly program set 233 million eggs in incubators during the week ending 6/8/19, up 1% from a year ago. Average hatchability for chicks hatched during the week in the United States was 82.9%. Average hatchability is calculated by dividing chicks hatched during the week by eggs set three weeks earlier.
**Starting in 2018, the 19-State totals have been discontinued.**
BROILER-TYPE CHICKS PLACED IN THE UNITED STATES UP 1%
Broiler growers in the United States weekly program placed 190 million chicks for meat production during the week ending 6/8/19, up 1% from a year ago. Cumulative placements from the weeks ending 1/5/19 through 6/8/19 for the United States were 4.27 billion, up 2% from the same period a year earlier.
** Starting in 2018, the 19-State totals have been discontinued. **
WHOLE CHICKEN & CUT-UP PARTS
Small bird supply and demand is still out of balance, pushing pricing higher, as demand is hard to fulfill. We can expect this trend to continue through 2019. The demand for medium and jumbo whole birds and WOGs is steady, and beginning to get a slightly increased amount of attention as the weather warms up. We expect a continued slight increase in pricing in the near term.
BONELESS, SKINLESS BREASTS & CHICKEN TENDERLOINS
The select/small boneless breast markets were flat during the week of 6/10/19. This market continues to be supported by the YTD headcount deficit in the small bird category. We can expect the select/small market to trend flat to upward in the near term. The medium boneless breast market was down slightly, as minimal spot loads have appeared in the short term. The jumbo boneless breast category was flat, following the same trend as the small market, with spot product being offered, although deep discounting is not taking place. Looking near-term, we should expect this market to trend flat to slightly downward trajectory. As bird weights increase, and some processors switch from a medium to a jumbo bird, this market could continue a flat to downward movement. The current outlook of oversupply in the jumbo market this summer remains intact.
During the week of 6/10/19, the select/small tenderloin market was flat. Further Processors and retailers in the small poultry category continue to support this market, with expectations of a flat-to-upward movement in the near term. The jumbo tenderloin market was flat as well, with the near-term outlook being balanced to tight. Going forward, we can expect seasonal market increases through the summer.
The small wing market was flat the week of 6/10/19, with expectations that this market will trend flat to downward for the near term. The medium wing market was flat, with spot load offers being consistently harder to uncover. We should expect the medium market to remain flat to upward in the near term. The jumbo wing market followed the same pattern as the small markets, remaining flat. Processors continue to assess their individual inventories while keeping any heavy discounting at bay. We can expect the jumbo market to trend flat to downward as we enter a traditional declining June timeframe.
BONELESS, SKINLESS THIGHS
The boneless, skinless thigh meat market was slightly up during the week of 6/10/19. We expect this market to be fully supported by both increased export and domestic demand. We can expect this market to trend flat to slightly upward in the near term.