Source: Rita Jane Gabbett, MEATINGPLACE, 4/25/16


USDA on Friday estimated broiler-type chicks hatched during March 2016 totaled 804 million, up 2 percent from March 2015. Eggs in incubators totaled 650 million on April 1, 2016, up 1 percent from a year ago.

Leading breeders placed 8.41 million broiler-type pullet chicks for future domestic hatchery supply flocks during March 2016, up 17 percent from March 2015, the agency reported in its monthly Chicken and Egg Report.

“We believe the long-term supply/demand chicken fundamentals are positive,” wrote Stephens Inc. analyst Farha Aslam in a note to investors. The firm continues to rate Tyson Foods, Sanderson Farms and Pilgrim’s Pride as “overweight,” meaning that the stock is better value for money than others.

Aslam suggested the 17.4 percent rise in pullet placements (parent flock) for March likely reflects placements for Sanderson's new facilities in Texas and North Carolina and Peco's new plant in Arkansas. 

Given that pullet placement number can be volatile month to month, she noted that year to date, pullet placements are up s up 5.4 percent year over year and over the last 6 months, pullet placements have averaged up 3.7 percent.

In 2016, U.S. poultry production is expected to grow 2 percent to 3 percent, compared to a 4 percent increase in 2015.

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