Brazil chicken prices dip as domestic supply outpaces demand
July sales weaken despite early-month demand and holiday impactAlthough the typical demand at the beginning of the month usually boosts Brazilian chicken prices, quotations moved down in many regions surveyed in early July, according to a recent market report from Cepea. The decrease is linked to a supply that continues to exceed demand.
The high supply stems from restrictions some countries imposed on Brazilian chicken exports after a bird flu case was confirmed in Rio Grande do Sul in May.
While key trade partners have since resumed purchases, the domestic market has yet to rebalance supply and demand.
Cepea also notes that school holidays in Brazil have contributed to reduced demand, reinforcing the downward price trend.