Chicken
Chicken
Price movements (monthly)
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EU Chicken - BY18
Month-on-month Change
Year-on-year Change
US Chicken - Comcode: 21626
Month-on-month Change
Year-on-year Change
EU
- EU chicken prices rose by 1.0% compared to the previous month, reaching €3,002.8 per metric ton. A continued y-o-y reduction in the availability of hatching eggs and live birds, along with slow restocking trends both within the EU market and globally led to an increases in price both m-o-m and y-o-y.
- Furthermore, the recent outbreaks of Newcastle disease in Poland, the largest poultry-producing country, led to further market tightness.
US
- At the start of August, 3-3.5 lbs. WOG chicken values corrected slightly lower as retreating retail, cutting, and further processing outreach efforts left fully adequate supplies making the rounds on the spot market. After the initial price correction, heavy average live weights helped to lend a more balanced backdrop to this segment.
- Between the beginning and end of the month, spot quotations retreated by $0.04/lb, or 4.4%.
- August’s monthly average value of 3-3.5 lbs. WOGs was situated at $0.87/lb. delivered. This quotation compares with the five-year average of 0.93/lb.
Chicken
Price drivers
↓ Logistics
The shipping 40ft container composite decreased by 12% M-O-M and 56% Y-O-Y to $2,340 per unit in August. The decline in freight rates is explained by the fact that a significant portion of cargo was shipped in advance in July to avoid the August tariff deadlines, after which volumes fell sharply. Additional pressure is being exerted by the growth in container capacity, which has exacerbated the problem of global overcapacity. As a result, carriers have been unable to maintain prices, and rates on key routes continue to fall.
↑ Feed Costs
Feed grains are a significant component of livestock production costs. As a result, any price decreases in maize (corn) and wheat could push prices of animal protein downward.
EU wheat prices fell month-over-month due to strong production outlooks, with concerns over grain quality easing as harvests wrapped up in dry weather. German wheat output rebounded, up 21.9% year-over-year.
EU corn prices also dropped in August, influenced by bearish global fundamentals, such as higher-than-expected US yields and record output in the US and Brazil. While Ukrainian corn production forecasts rose, crop stress from dryness across Europe helped limit further losses in futures markets.
↑ Energy Prices
Electricity prices in Europe and the US fell by less than 1% month-over-month. As a result, production costs remained virtually unchanged from the previous month. Given that scrap steel and electricity prices changed insignificantly, the cost of steel production in electric furnaces remained stable in August.
Chicken
Price forecast
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