UAE’s poultry inventory bought out ahead of Ramadan

Cold stores of chicken meat in the UAE have emptied over the last week as a major local distributor buys in preparation ahead of Ramadan, according to market sources.

"After a prolonged period of high inventory levels and low domestic prices, demand from the UAE is strengthening once again," a Brazilian supplier said.

"The cold stores are nearly empty, especially for chicken cuts," a UAE-based trader said. "Normally they should be full by now in preparation for Ramadan, so I'm wondering how this Ramadan will look."

Ramadan in the UAE starts Feb. 27 this year.

A major Brazilian supplier said that one of the largest UAE-based distributors had procured a substantial quantity of chicken breast from importers in anticipation of increased demand during Ramadan, prompting importers to reach out to Brazilian exporters for additional products.

"Importers now have lower stocks and are coming to Brazil (mainly through traders) to buy more product," the supplier said, adding that "we are seeing prices react accordingly."

Prices have remained bearish since late September 2024 against a backdrop of high inventory levels and low demand following the high imports earlier in the year combined with lower-than-expected summer domestic consumption, reaching a year low of $2,890/mt on Nov. 7.

Platts last assessed the CIF Middle East chicken breast price at $2,990/mt Jan. 15, to remain under the lowest offers heard on the day in the Middle East assessment window.

Platts is part of S&P Global Commodity Insights.

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