November 29

11/29 – Will there be any relief from high protein prices in 2022? Not likely in beef and pork, with the USDA forecasting output to decline by 3.5% and 0.3%, respectively, in 2022. But chicken is showing signs of recovery. Despite high feed prices, producers are putting up record profits and the industry looks to be gambling on expansion. In its 11/22 Chicken and Eggs Report, the USDA said that breeders placed 8.57M broiler-type chicks for hatchery supply flocks during Oct 2021, up 6% from a year ago. Eggs being set in incubators are up 5.4% from a year ago over the past 9 weeks. Chicks placed for grow-out are up 2.6% over the past 4 weeks, despite continuing fertilization and mortality issues. In Oct’s WASDE report, the USDA projected broiler output to be up 0.5% in 2021 and 0.9% in 2022. We think that 2022 broiler production will end up coming in at 2% or better.