CME: Declines in Broiler Egg Sets Expected to End
US - The year over year declines in broiler egg sets and chicken placements should come to an end by the end of June, write Steve Meyer and Len Steiner.Broiler producers
have been slowly adding more egg sets in incubators, which
is not unusual for this time of year. Come July and August, we will
start comparing to the sharp cutbacks put in place last year and
our expectation is for egg sets to be 1 – 2 per cent over year ago.
By September
and October, which was the bottom in the market last year,
egg sets could be as much as 4-5 per cent over last year. Lower feed costs
will likely encourage some production increases but it will take
probably until the first half of next year for producers to start to
increase production capacity.
Feed markets remain volatile. While
there is broad expectation for a significant recovery in feed supplies
and lower feed prices, $6 corn is not entirely out of the question at
this point. Mother Nature has surprised us before.
Also a significant
worry for broiler producers is the export situation, with Mexico
threatening to impose prohibitive tariffs on US leg quarters and leg
meat. This will temper some of the zeal for expansion.

