The Great Chicken Run: A culinary chase for tenders and wings
In a bustling marketplace where the clamor of buyers and sellers filled the air, a peculiar and frenzied chase was underway. The demand for chicken tenders had skyrocketed, outstripping the available supply, leaving both foodservice, further processing and retail purchasers scrambling to get their hands on any product they could find.
Simultaneously, wings were experiencing a similar craze. The robust undertone of demand persisted across all sizes, surprising market participants who hadn’t anticipated such fervor. Traditional buyers, undeterred by the rising prices, remained active in their relentless pursuit. Every limited spot load that hit the street was met with eager, hungry eyes and swift transactions.
In the foodservice sector, chefs and restaurant owners were the most enthusiastic, their menus dependent on these coveted chicken parts. Retail purchasers, driven by the demands of their customers, proved equally fervent, their strategies evolving to outmaneuver competitors and secure their share of the dwindling supply.
Seasonal demand patterns played a significant role, adding fuel to the fire of an already hot market. Barbecues, game days, and holiday gatherings ensured that wings and tenders remained in high demand, making each batch of chicken a prized commodity.
As the culinary chase continued, the market buzzed with activity. Buyers and sellers alike adapted to the ever-changing landscape; their strategies as dynamic as the marketplace itself. The Great Chicken Run was a testament to the lengths to which people would go to satiate their cravings, turning each day into an exhilarating game of supply and demand.
Whole Turkeys remain flat amid unpredictable seasonality
Unusual trends have emerged in the poultry market, particularly with frozen turkeys, causing uncertainty among market participants. Despite these fluctuations, the current market for whole-body toms and hens remains stable, with spot offerings falling within a narrow price range. Availability is adequate, and buyers, focused on cost-savings, continue hand-to-mouth purchasing.
Producers maintained an unwavering stance, keeping prices steady. However, the frozen turkey market has been unpredictable, creating uncertainty. This irregularity has both buyers and sellers proceeding cautiously. With summer transitioning to fall, a slight seasonal demand uptrend is expected, driven by increased culinary activities and holiday preparations.
Overall, the market for whole-body toms and hens remains stable. While further data is awaited, the unusual behavior in the frozen turkey sector adds complexity, prompting stakeholders to stay alert to new market dynamics.\
Liquid whole egg sees a whole lot of upward momentum
In the back half of May, the egg industry suffered a production loss of nearly 7 million layers, most of which were meeting the needs of the egg-processing sector. The ongoing spread of bird flu accounts for most of this loss, with 5.6 million layers affected, while a fire on a farm in the Midwest accounts for the other 1.2 million.
This loss of production has left the industry in a deficit position, sparking a surge in spot market buying interest for liquid whole egg as processors scramble to cover short positions. Buyers have faced stiff competition from the graded market, which is also experiencing strong spot-market needs amid unseasonably brisk demand in the retail sector and the lingering impact of HPAI. In addition to May’s production losses, another 8.2 million layers were destroyed the month prior.
To entice sellers, buyers have had to become increasingly competitive in their bidding, driving up whole egg prices by 47% in less than two weeks. This rally follows a sharp correction that began in the second to last week of April, which is likely to be completely undone by week’s end. Based on the latest confirmed trades, the market is poised not only to retrace last month’s correction but to set a new intra-year high, which currently stands at $1.20/lb.
Diary fat prices continue to trade upwards
The market sentiment for EU butter remains bullish, with prices increasing during this week’s assessment period. Buying interest increased during the week, as buyers returned to the market with prices increasing rapidly, covering volumes for Q3 2024 and early Q4 2024, as demand for H2 2024 has remained largely uncovered so far this year, according to multiple market sources. A similar situation has been reported for the AMF (anhydrous milk fat) market, as AMF prices continued to increase during the week. While demand continues to grow, supply remains tight across the EU, with processors and traders indicating tight stock levels. Several producers indicated that they were slightly behind the production schedule for butter and that the returning demand has stretched the tight availability even further. Producers indicated that this short-term supply constraint will not impact supply security as stocks of older butter remain available if needed.
Written by Jake Mills-Zivanovic
