Stubbornly high chicken supplies, which have pressured prices for U.S. producers, should start to decline in July, Sanderson Farm Inc.'s (SAFM) chief executive said Tuesday.
Chief Executive Joe Sanderson said the number of eggs set in incubators, an indication of future supplies, are so far not mimicking increases in recent years that occurred in May.
The likely end result, Sanderson told investors at a conference in New York, is fewer chickens in July, August and September. That would be welcome news in an industry that is losing money due to soaring feed costs, flat demand and excess supplies.
Still, while retail demand is strong, demand remains weak, particularly for food service, which includes restaurants, Sanderson said.
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