Middle East poultry prices hold firm as buyers face limited supply alternatives

Middle East poultry prices remained firm after the Eid Al Adha holiday period, with market participants saying limited alternative suppliers and ongoing logistics uncertainty were preventing a broader decline despite expectations for a weaker summer demand.

Platts assessed chicken breast CIF Middle East, basis Jebel Ali, at $2,940/mt on June 1, while shawarma was assessed at $2,870/mt, grillers at $2,290/mt and chicken leg quarters at $1,530/mt.

Market participants said activity was gradually returning after the holiday period, although many buyers remained cautious as they assessed demand prospects for the summer months.

A regional trader said poultry consumption typically slows during June and July before demand begins to recover later in the year.

"We will see more serious stocks in the Middle East in October and November," he said, adding that buyers are likely to begin covering requirements during August loading ahead of stronger fourth-quarter demand.

Despite softer seasonal demand expectations, participants said current market conditions continue to support prices.

"In the short term, it seems that prices will not go down," the trader said. "They have to buy."

The trader cited limited alternative supply sources for the Gulf market, noting that Turkey remains largely absent from export markets while Ukraine and Russia are unable to provide sufficient volumes to replace the Brazilian product.

Participants also said Brazilian exporters remain confident in maintaining offer levels because of their dominant position across key poultry products and established relationships with Middle Eastern buyers.

"Brazilian suppliers know their position very well," the trader said.

Recent indications heard in the market included chicken breast offers about $2,950/mt CFR Khor Fakkan and shawarma at $2,900/mt CFR Khor Fakkan for H2 July shipment.

While demand is expected to remain seasonally weak through the summer, participants said supply-side constraints and limited alternatives are likely to keep prices supported until buying interest returns ahead of the fourth quarter.