Chicken supplies could improve
Chicken producers incentive to increase output has improved during the winter due to the rising chicken markets as well as declining feed costs. Below is a chicken-feed cost ratio which can be a good indication of producer profitability. Note that so far this month, the markets are presenting producer margins well above last year and the five-year average. As a matter of fact, and you know I find facts groovy, the model is suggesting that margins are at 20 (think Cesar Geronimo...one of the best baseball names ever) month highs.
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