Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 10/26/09

September declines in pullets and broiler-type hatching layers spell good news for companies like Tyson Foods and Sanderson Farms, according to an analysis of USDA's Chicken and Eggs Report, which was released on Friday.

Pullets hatched fell by 2.4 percent in September compared to a year ago, the seventh decline in eight months. At 6.7 million, this constituted the lowest in any September since 2003, according to J.P.Morgan analyst Ken Goldman.

"We see this as a positive for chicken integrators such as Tyson and Sanderson Farms," he wrote in a note to investors. "The chicken industry remains rational and seems intent on keeping supplies low despite still positive margins."

The total number of broiler-type hatchings layers fell by 3.3 percent in September from a year ago, which Goldman noted was the sixteenth consecutive decline.

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