U.S. broiler stocks at the end of October totaled 626 million pounds, down 6 percent from 2011 numbers, according to the U.S. Department of Agriculture's latest report.
Stocks for most broiler products were well below their year-earlier levels, with the exception of legs and wings. Whole bird stocks were down considerably from 2011 (by 27 percent), placing upward pressure on prices. Stocks of breast meat, thighs and thigh meat were also down sharply. The declines for most broiler product stocks were partially offset by strong gains in two areas: stocks of legs totaled 12.8 million pounds, up 32 percent from the previous year, and stocks of wings were 37 percent higher than in 2011 at 70 million pounds.
Cold storage holdings of broiler products at the end of third-quarter 2012 were revised downward slightly to almost 623 million pounds, a decrease of 2.6 percent from the end of September 2011, according to the USDA. With broiler meat production expected to be higher in the fourth quarter of 2012 and broiler exports expected to decline somewhat, the estimate for fourth-quarter ending stocks was increased by 25 million pounds to 625 million pounds. This would be 35 million pounds higher than in 2011, up 6 percent.
Prices for most broiler products were higher in November than in 2011, according to the USDA report. One exception was leg quarters, which averaged 51 cents per pound, down 1 percent from November 2011. Leg quarter prices were generally steady through much of the first 10 months of 2012. Whole bird prices were supported by much lower stock levels, averaging $0.99 per pound in November, up 24 percent from the same time in 2011. Lower stocks for other broiler products also helped to move their prices higher. Prices for boneless/skinless breast meat and breasts with ribs were up 7 and 21 percent, respectively.
Although cold storage holdings of wings were up 37 percent at the beginning of November, prices have remained very strong. In November, wing prices averaged $1.88 per pound, 47 percent above 2011 numbers and 44 percent more than boneless/skinless breast meat. Despite higher year-over-year production expected in fourth-quarter 2012 and higher cold storage holdings for the end of 2012, broiler prices are expected to be relatively stable during the end of 2012 and into 2013, according to the USDA.
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