May 8

5/8 - With cattle herd numbers historically low, and hog farrowing intentions slim, the 2nd half of 2023 is going to be all about chicken – and the poultry industry appears to be geared up to handle it. The USDA reported the current breeding stock of broiler‐type hatching layers was at record high levels on April 1st, 2.3% above a year ago. Chicken production (ready-to-cook) for the month of April was 2.7% higher than in 2022. Total chicken in cold storage on April 1st was up 8.6% from a year ago, and chicken breast meat was 39.4% higher. Feed inputs are getting cheaper, with year-to-date corn prices in 2023 averaging $6.57 vs. $7.06 per bushel in 2022. Corn futures contracts for the 2nd half of 2023 are averaging $5.55, reflecting expectations for adequate rainfall and a bigger corn crop. USDA (unsized) boneless, skinless breast is at $1.31/lb, but will likely trade in the $1.50s for June; $1.40s for July/Aug.