Middle East chicken prices flat as summer demand weighs despite tensions

Middle East poultry markets remained subdued July 10 as weak seasonal demand continued to overshadow geopolitical tensions, with major importers delaying replacement purchases after securing forward cover through October, according to market participants.

The muted trading activity reflects a shift in buyer behavior, with procurement strategies increasingly focused on underlying consumption patterns rather than reactive purchasing during regional tensions, traders said.

Platts, part of S&P Global Energy, assessed chicken breast CIF Middle East, basis Jebel Ali, unchanged at $2,800/mt July 10, according to the company's benchmark pricing. Chicken shawarma held steady at $2,800/mt, while chicken leg quarters remained at $1,520/mt. Chicken griller was the only product to move, declining $10/mt to $2,240/mt.

Market dynamics

The pricing stability comes despite renewed US-Iran tensions that have historically triggered supply chain disruptions and inventory building across Gulf markets. However, participants said larger UAE importers had already secured July and first-half August loading programs, providing inventory cover through October and reducing urgency for additional purchases.

"We also bought," a UAE importer told Platts July 8, adding that cargoes destined for the UAE continued to be routed through Khor Fakkan rather than directly into Jebel Ali. "We have taken orders to Khor Fakkan port only."

The logistics adjustments reflect ongoing shipping constraints, though market participants indicated these operational changes have become routine rather than crisis-driven responses.

"I'm not sure any of us know what to expect," a UAE-based processor told Platts, "Shipping is still very badly impacted."

Another market participant said that regional volatility had diminished the market's reactivity to individual events. "It's too early to say. The market is not moving as before, once got news like it," the participant said July 10.

By July 10, participants reported continued quiet market activity, with buyers showing limited interest in replacement cargoes as summer demand softened across the region. Several participants expected sellers to lower their offers in the near term to stimulate buying interest.

Market sources added that while regional tensions continue to complicate logistics planning, procurement activity is expected to increase later in the third quarter as importers begin rebuilding inventories ahead of stronger post-summer demand patterns.