Firmer outlook for poultry prices
Global poultry prices are taking off in Q2, according to Rabobank’s quarterly poultry report.
This bullishness is driven by relative price support from high beef and pork prices alongside demand recovery and a more balanced supply and demand situation in most regions of the world.
The report also points to falling international feed prices, based on a good crop outlook for wheat in Europe and Australia, and for soy beans in the USA.
“Under improved global market conditions, led by the North American region, a slight increase in global chicken prices is expected,” says Rabobank analyst Nan-Dirk Mulder. “We see an increasingly balanced market, where supply discipline is more the order of the day and improving margins will be the likely result.
“However, markets remain volatile and any change in fundamentals, especially from the supply and feed side, will impact global prices. Suppliers should look to keep production growth disciplined.”