North Asia chicken leg prices extend rally in Feb amid Brazilian export shortfall

Chicken leg prices in North Asia have extended their rally in early February, Platts data showed, with market participants saying this was driven by tight inventories and firm demand ahead of spring, amid persistently low export volumes from Brazil to Japan.

Platts, part of S&P Global Energy, assessed the CFR North Asia chicken leg price at $3,100/mt Feb. 4 for cargoes loading over March-April to Tokyo, up $145/mt day over day and $400/mt, or 15%, month over month, surpassing the previous high of $2,900/mt set on Dec. 23, 2025.

Japan's total ending stocks of imported chicken stood at 121,635 mt as of November 2025, down 8,223 mt from October, according to data from the Agriculture & Livestock Industries Corp. A local importer described inventory levels as "a little tight."

Japanese market participants have been cautious, keeping an eye on any further potential declines in December and January's ending stocks, amid a tight supply situation expected to persist in the near term.

"The biggest reason [for the tight supply] is that Japan cannot buy enough volumes from Brazil," the importer said.

Another Japan-based importer said, "The offer quantity is very small."

Brazilian packers are maintaining export volumes at around 30,000 mt per month following the EU-Mercosur trade agreement, the first importer said, adding that the EU is expected to become a larger market for Brazil.

Domestic spot market prices in Japan have also remained firm, with imported unsized boneless leg (200 g and above) prices reaching Yen 700/kg (about $4.41/kg), according to local importers.

There is also support for chicken prices from persistently high pork and beef prices, increased demand for chicken cuts, and the impact of a weaker yen, a Japan-based meat distributor said.

Spain's inability to export pork to Japan following the African swine fever has further tightened supplies, prompting some supermarkets to boost chicken sales, according to the distributor.