Middle East poultry buyers extend forward cover despite Hormuz reopening

The reopening of the Strait of Hormuz has improved confidence across the Middle East poultry market, but buyers continue to secure supply further ahead than usual as uncertainty over delivery schedules lingers, market participants said.

Platts, part of S&P Global Energy, assessed chicken breast CIF Middle East, at $2,810/mt on July 2, while chicken shawarma was assessed at $2,790/mt, chicken griller at $2,270/mt and chicken leg quarters at $1,560/mt.

Although vessels have resumed transiting the Strait of Hormuz, participants said bookings have yet to return to Jebel Ali, with cargoes continuing to move primarily through Khor Fakkan before being transported onward into the UAE.

One importer said the continued reliance on transshipment routes has made it difficult to predict final delivery schedules, encouraging buyers to build a larger inventory cushion than they would under normal market conditions.

Several participants said larger importers have already secured supply through October, preferring to lock in product now rather than risk delays if logistics deteriorate again during the second half of the year.

Participants said the strategy reflects continued caution rather than stronger underlying demand. While shipping conditions have improved since the reopening of the Strait of Hormuz, buyers said they remain uncertain whether cargoes will reach final destinations within normal transit windows.

Market participants added that procurement has increasingly shifted toward August loading programs, allowing additional time for cargoes to arrive before seasonal demand strengthens later in the year. The approach, they said, reduces the likelihood of panic buying should regional logistics face further disruption.