Middle East poultry buyers restock despite weak seasonal demand

Middle East poultry trading showed signs of selective restocking in the week to April 24, even as seasonal demand remains subdued and buyers continue to approach the market cautiously, according to market participants.

Platts assessed chicken breast CIF Middle East, basis Jebel Ali, at $2,825/mt on April 23, edging higher after easing from mid-April highs above $3,100/mt as improving shipping conditions had briefly softened values.

Market participants said buying activity remains driven by uncertainty, with some importers increasing purchases to build inventories amid limited visibility on market conditions, rather than pointing to stronger underlying demand.

"Buyers are increasing purchases to fill warehouses because the situation is still unclear," a trader said.

Others noted that demand is typically softer heading into the summer period, when buying activity tends to slow, but current purchases are being driven more by uncertainty as some importers move to secure inventories.

On the supply side, sellers were heard maintaining firm indications, with some producers holding back offers in anticipation of further price support.

According to a Brazil-based trader, Brazilian exporters have been reducing the supply of boneless chicken breast to all destinations, anticipating that a possible price increase in the Middle East region may support higher prices in other markets as well.

"Market participants are positioning for potentially stronger demand," the source said. "An upward price adjustment is likely to materialize."

Indicative offers for Brazilian-origin chicken breast were heard at $2,900/mt CFR Khorfakkan, while bids remained closer to $2,650-$2,700/mt, highlighting a continued gap between buyer expectations and seller targets.

"Argentine exporters have also raised their offers to the region," a Brazil-based industry source said.

Participants said the market remains balanced between cautious buying and firm supply expectations, with restocking activity providing some support even as underlying demand remains limited.