Brazil: Positive expectations with the return of chicken exports to China and maintenance of prices in the domestic market

This week, the Brazilian chicken market maintained stable prices for both live and wholesale chicken. Fernando Henrique Iglesias, an analyst at Safras & Mercado, points to a balanced supply and adequate replenishment throughout the production chain. Iglesias notes that the return of Brazilian chicken exports to China, with the exception of Rio Grande do Sul, creates optimistic expectations for the short term. This factor should prevent a significant increase in domestic supply. “Animal nutrition costs remained stable during the week, favoring the sector’s margins. It is essential to monitor the level of chick housing, which is crucial for price formation,” he explained. At wholesale, prices remained constant during the week. Iglesias highlights the good fluidity in replenishment between wholesale and retail, and the positive expectations for final consumption, driven by the entry of wages into the economy and Father’s Day next Sunday. According to the Safras & Mercado survey, the ...