Chicken prices fall in Brazil despite early July demand
High supply and school holidays weigh on domestic marketAlthough early July typically sees stronger demand that lifts chicken prices, values fell in many regions surveyed by Cepea during the first week of the month. The decline is linked to an oversupply of chicken meat relative to current demand.
According to Cepea, the elevated supply is a lingering effect of trade restrictions imposed by some countries following a case of avian influenza confirmed in Rio Grande do Sul in May.
While key trading partners have since resumed imports, the domestic market has yet to find balance between supply and demand.
Cepea analysts also noted that Brazil’s school holiday period has contributed to softer demand, reinforcing the downward pressure on prices.