Source:  Lisa M. Keefe, MEATINGPLACE.COM, 11/24/09

The number of broiler-type pullets hatched are inching upwards compared with year-earlier levels, and cuts in already rationalized supplies are tougher to achieve, J.P. Morgan protein equity analyst Ken Goldman noted in a report to investors.

USDA's October Chicken and Eggs report indicated that the number of young breeding hens hatched fell just 0.4 percent, compared with the year-earlier level. Moreover, the agency revised its September count to show a 3.3 percent increase over the year-earlier figure, compared with the originally reported decline of 2.4 percent.

While pullets hatched over the last three months still are down 1.7 percent compared with the same period in 2008, Goldman notes that the number of pullets hatched is above the five-year average for this time of year.

"The chicken industry remains rational and as a whole, seems intent on keeping supplies in check," Goldman wrote. "But the time when the industry could count on declining breeder numbers may have passed."

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