Chicken Trends - August 16, 2019
Poultry market information from the week of Aug. 12, 2019.
Small, medium and jumbo wing markets were flat this week, with steady demand as the official start of wing season begins. The select, medium and jumbo breast markets were flat. In the near-term, analysts forecast these markets should remain balanced. Analysts are referencing the USDA projections of increased jumbo headcount, along with decreased demand going into the fall season could push jumbo breast prices lower this fall. Jumbo and small tenders were down this week, as demand continues to be unsettled. Analysts state the demand in this market from retail and further processors has continued to be weak; however, they also state that this could change rapidly if further processors step back into these markets.
Export demand continues to be reported as well balanced. Thigh meat and bulk leg quarters were down slightly this week, with leg meat remaining unchanged. With increasing jumbo supply, analysts predict these markets could trend flat to downward in the near term. Whole birds/WOG demand has balanced out, resulting in a flat to slightly upward market trend.
BROILER-TYPE EGGS SET IN THE UNITED STATES Up 1%
**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 189 million chicks for meat production for the week ending Aug. 10, 2019, up 1% from a year ago. Cumulative placements from the week ending Jan. 5, 2019, through week ending Aug. 10, 2019, for the United States were 5.97 billion, up 1% 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 harder to fulfill. Analyst believe this trend should be expected to continue through 2019. The market for larger-size whole birds and WOGs is balanced. As jumbo bird availability increases, analysts believe this could develop into slight decreases in pricing for the near term.
BONELESS, SKINLESS BREASTS & CHICKEN TENDERLOINS
The select/small boneless breast market was flat this week. This market continues to be supported by the YTD headcount deficit in the small bird category. As we go into a typically low-demand boneless breast season, analyst believe the select/small market could trend flat to slightly downward in the near term. The medium boneless breast market was flat, with spot load offerings being uncovered at slight discounts. The jumbo boneless breast category was flat this week, with spot product being harder to uncover at attractive discounts.
This week select/small and jumbo tenderloin markets were down. Analysts reference further processors and retailers continue to move in and out of these markets, which could result in a flat to slightly downward trend in the near term.
The small wing market was flat this week, as analyst expectations are that this market will trend flat to upward for the near term. The medium wing market was flat during the week of Aug. 12, 2019, with spot load offers being consistently harder to uncover. Analysts expectations are that the medium market remains flat to upward in the near term. The jumbo wing market remained unchanged this week. Spot product offerings have become harder to uncover, and are being offered at only minimal discounts. The jumbo wing market is expected to trend flat to upward, as the typical seasonal high wing demand is right around the corner.
BONELESS, SKINLESS THIGHS
The boneless, skinless thigh meat market was down this week. Analysts speculate that this market could be hampered by lack of further processor demand and jumbo supply increasing. Analyst expectations are that this market will trend flat to slightly downward 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.