According to a Rabobank report, a historic drop in poultry exports from Brazil is shaking up trade in the commodity. Global poultry prices declined by an average of five-to-ten percent in the second quarter of 2018. While the prices are weakening, margins will also be soft as protein supplies rise. However, that drop could reverse by 2019. Analysts in the report say, “Chinese consumers may turn from pork to poultry and push prices somewhat higher.” The report goes on to say that while this can paint a pessimistic picture, in reality, poultry industry performance is still solid around the world. Rabobank reports the industry is being helped by growing exports to Cuba, Taiwan, and Vietnam.
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