We have previously focused on the challenges in the broiler hatchery which have become evident in US egg set and chick placement figures.
More recently this trend has started to become more tangible in the field, providing support to what we have been seeing about on paper.
Hatching eggs are at a premium and in an effort to help offset potential shortages, layers are being held in the field longer.
With an older laying flock comes an age enhanced reduction in the hatch percentage.
One of the more visible results of this overall supply reduction is showing up in the market for chickens without giblets.
Although renewed strength during the latter part of the first quarter of is an easily identifiable seasonal trend, this year’s strong support is also being attributed to more limited supply.
Looking at cutting stock chickens without giblets, 2018’s first quarter market low is well above any other recent year, never sinking to the more traditional depths.
Support aided by reduced availability in advance of the seasonal trend has led to strong expectations for market performance in the weeks ahead.
This article first appeared in Urner Barry, whcih like Agrimoney is owned by AgriBriefing.