Chicken & Turkey Situation (Urner Barry)

Chicken Situation :

Tone: A Penny for Your Thoughts

As is typical for a Monday morning in late October, most players are in fact-finding mode to start the week and market-breaking sales and input have been slow to materialize. With that said, there is some clear definition to a handful of lines that need attention, and our quotation changes reflect that.

Gathering input on whole chickens was less than fruitful today but all indications suggest an about steady undertone is in play. Market direction on the larger-sized WOGs was more forthcoming and a distinct willingness to discount on the part of most sellers continues to exist. That being said, some note conditions appear to be improving slightly. Breasts and front halves are becoming increasingly difficult to source and buyers have upped their bids in an attempt to secure offerings. Both lines are rated full steady moving forward.

Offerings of jumbo boneless, tenders, and jumbo wings are not as prevalent on the spot market to start the week. Experiences vary some for tenders but overall, all lines sit in an about steady position pending further market developments. Chunk and trim meats remain solidly positioned and are held with confidence. The same can be said for select-sized boneless.

Moving to the back half, bulk and yellow drums are pressured as availability increases and demand retreats. Bulk leg quarters are in a similar position, but market feedback was slow to materialize. Overall, all the bone lines are in shaky position as retail demand continues to lack flavor and the ability to box and freeze has been an issue due to CO2 shortages. Sellers of leg and thigh meats continue to entertain lower bids in an attempt to spur movement. The same can be said for MSC but like many other lines, consistent market feedback has been lacking.

Matt Busardo

Turkey Situation :

Tone: Turkey Trot

Although it would be premature to suggest that fresh pack and ship season is in high gear, it’s undeniable that the pace is picking up rapidly. With spot loads of any pack or size struggling to satisfy the call, buyers can’t be selective and rarely place inquiries with the hoped-for result. In addition to the bullish market scenario surrounding whole birds, other lines such as fresh tom breast meat, scapula, and even fresh necks all gallop into the week with a seasonally strong rating.

To further elaborate on bagged turkeys, spot availability continues to be short of nothing. Hens and the smaller sized toms are elusive. The seasonally strong undertone surrounding frozen birds is mimicked on the fresh side where most production is accounted for, at least on paper. Our quotations find full support. Consumer sized breasts are sought after and unable to satisfy interest. Institutional sized product availability is generally balanced to closely balanced against current needs. Paid prices help to paint a supportive picture to this segment.

Turning to parts, frozen tom drums, necks and two-joint wings are well-accounted for. All three of these lines wind down the morning with a full-steady rating. On the fresh side, high prices on frozen and ease of placement finds fresh production commanding premiums on limited volumes. Gizzards supplies are tight with many processors hard-pressed in their ability to divert plant workers away from other more fruitful endeavors. A similar scenario is in place for hearts and livers.

As for raw materials, late-October demand remains seasonally robust across the board. Today’s canvass continues to highlight moderate volume trade of fresh tom breast meat which is ultimately inked at up money. Tenderloins are well-cleared and deserve a full-steady rating. Buyers of scapula and wing meat struggle to consistently uncover their full needs. Those who do manage to dig up some spot availability display little very hesitancy to pay the premium required. Turkey thigh meat is short of full needs while fresh and frozen MST are balanced low-volume movement being inked at supportive values.

Par : Matt Busardo (Chicken Situation); Dylan Hughes (Turkey Situation) (25/10/2021)

Source : COMTELL via Foodmarket Newsletter (Urner Barry)