Chicken prices strengthening again

Kinda sorta more of the same in the commodity markets last week with cheese and pork belly (think Homer "mmmm Bacon") prices continuing to surge, the chicken breast markets counter-seasonally moving upward, while many beef markets softened some but remained expensive. Don't look now but spot corn prices fell last week to their lowest level in 22 (think Emmitt Smith...Go Gators) months.

Feed prices have been on the decline as of late due to better weather conditions. Although corn and soybean crop ratings have improved, they are nothing to get excited about as noted in the chart for 2023 below. As a matter of fact, and Homer really never liked those, corn and soybean crop ratings are still solidly below their respective five-year averages for this time of the year. And don't get me started on spring wheat where just 41 percent of the crop is rated in either good or excellent (you go Wayne Campbell) condition Monday compared to the five year average of 52 percent.

So how about this counter-seasonal move in chicken breast prices? You may have heard that beef supplies are tight and that raw product hamburger costs reached record highs earlier this year. This is anticipated to fuel strong chicken feature activity in the coming months. And this, ladies and gentlemen, could be supportive of the chicken markets at times...perhaps at times when we aren't used to such a thing.

Datum FS is an commodity intelligence organization that has research and forecasts for over 50 commodities comprising various beef, dairy, grains, pork and chicken markets. If you would like to learn more about a complimentary trial to the forecasts and commentary or about Datum FS services visit?www.datumfs.com. Thanks for reading.