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Rabobank Sees ‘Strong’ Poultry Prices as Global Demand Increases

Global poultry prices may “remain strong” in the next two quarters as world meat demand increases and supplies decrease in the U.S. and Brazil, Rabobank International said.

Beef prices that climbed to a record this year will support poultry, Rabobank analysts including David Nelson said in a report e-mailed today. U.S. wholesale choice beef prices climbed to $1.988 a pound on Feb. 29, the highest since at least January 2004, according to the U.S. Department of Agriculture.

Brazil, the world’s biggest chicken-meat shipper, is cutting output after a strengthening real reduced demand for its exports, and U.S. chicken breast inventories are 13 percent smaller than last year, according to the Rabobank report.

Europe’s poultry industry should benefit from rising exports to Asia, Africa and the Middle East, while the U.K. and Germany may have excess supplies, Rabobank said.

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