Average price / lb components of GA dock (tenders, breasts, drums, quarters etc…) were up from $1.19 to $1.24 last week yet GA dock only ticks up a quarter cent to $1.03 on whole 3 lb birds. How does GA dock price work?
Tenders and breast prices moved significantly higher last week … “I ate the bones”…. ?? … grilling season starts.. ?? … restaurant / retail features… ??
At this point $8.80 share and no sellers this is more about the limited number of shares then the price of chicken at the moment.
I am taking a few profits this week. Fundamentally we are overpriced but the market is a strange place. Perhaps the thought that JBS might be buying out us minority share holders with all time low cost of borrowing vs. stockholders equity is driving the price?
Looking at the futures contract for feeder cattle and lean hogs into the summer months and there is a fairly significant upward expectation. $1 on GA dock by March may not be too much of a stretch... but is $1.05 by August a stretch?
At some point high beef and pork price floats the chicken price boat … plus chickens have a feed conversion advantage over beef and pork.