Chicken Trends - April 19, 2019
Small, medium and jumbo wings were flat this week, with lighter live weights and year-round demand helping to support these markets. The boneless breast markets were flat this week, with late week uncovering an uptick in further processing inquiries. Spot offerings on jumbo boneless continue to take front stage at competitive prices. We do expect demand from retailers and foodservice to jump back into this market, which will support continued price increases as we go into the summer months. Jumbo tenders were flat this week, as this market is currently in a balanced to tight position, without any spot offerings being discovered. The select/small tender markets were flat this week, 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. Thigh and leg meat were flat this week, with leg quarters also remaining unchanged. Going forward, we can expect slight incremental increases in all dark meat categories in the near term. Whole birds/WOG demand has shown 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 2%
Hatcheries in the United States weekly program set 233 million eggs in incubators during the week ending April 13, 2019, up 2% from a year ago. Average hatchability for chicks hatched during the week in the United States was 82.2%. 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 2%
Broiler growers in the United States weekly program placed 186 million chicks for meat production during the week ending April 13, 2019, up 2% from a year ago. Cumulative placements from the weeks ending January 5, 2019 through April 13, 2019 for the United States were 2.76 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 hard to fulfill. We can expect this trend to continue through 2019. The demand for medium and jumbo whole birds and WOG’s is steady, and beginning to get a slightly increased amount of attention as the weather warms up. We expect a potential slight increase in pricing in the near term.
BONELESS, SKINLESS BREASTS & CHICKEN TENDERLOINS
The select/small boneless breast markets were flat this week. 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 jumbo and medium boneless breast markets were were flat this week, with fewer spot opportunities showing. The forward outlook suggests this market will continue to rise as retailers, Further Processors and the foodservice segment continue their support going into the spring and summer months.
The select/small tenderloin market was flat this week. 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 this week, with the near-term outlook being balanced to tight. Going forward, we can expect seasonal market increases through the spring and summer. We can expect this market to trend flat to upward in the near term also.
The small wing market was flat this week, as expectations are that this market will trend flat to downward for the near term. The jumbo and medium wing market was flat this week, with spot load offers increasing slightly in number, with attractive pricing. We can expect the jumbo market to trend flat to downward as we enter into the traditional declining market during May and June, following the same path as small wings. However, given developing supply constraints, we should expect the medium market to remain flat to upward in the near term.
BONELESS, SKINLESS THIGHS
The boneless, skinless thigh meat market was flat this week. We expect this market to be fully supported by both increased export and domestic demand. We can expect these markets to trend flat to upward in the near term.