New federal data show chicken production on the rise, which means prices probably will fall — bad news for chicken producers.
THE OPINION: KeyBanc Capital Markets analyst Akshay S. Jagdale told clients in a note Monday that the latest figures from the U.S. Department of Agriculture show supply may be trending upward. The government released data on pullet placements and breeder flock — indicators of chicken supply.
In June, 7.6 million pullets were placed, up 6 percent over June 2009, while the figure rose 4.5 percent for May from the same period last year.
Jagdale concluded that chicken production could increase more than 2 percent in 2011 and "this month's number was bearish for future chicken prices."
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