Brazilian chicken prices fall across Americas on weak demand

Brazil-origin boneless chicken breast export prices to destinations across the Americas have declined in recent weeks, pressured by weaker demand, increased supply in some markets, and growing buyer caution, according to market participants.

The trend has been more evident in South American markets such as Chile and Argentina, although market participants also reported signs of weakness in Mexico.

In Chile, market participants said lower prices were largely driven by increased product availability. A Brazil-based trader said a major Brazilian packer was heard shipping significant volumes into the Chilean market at more competitive price levels, pressuring export prices.

"I heard from several customers that a major player was offering products at lower prices in Chile, which ended up disrupting the market," the source said.

A Brazilian exporter shared a similar view, saying market participants had linked weaker prices in Chile to increased supply.

Despite recent price pressure, Chile remains the main destination for Brazilian poultry meat in South America. The Brazilian Foreign Trade Agency, Secex, data showed exports to the country totaled 56,871 metric tons in the first half of 2026, up 42.1% from the same period in 2025.

In Argentina, market participants said a combination of softer demand, increased supply, and currency depreciation may be weighing on the market.

Another Brazilian trader said recent trades with Mercosur countries were concluded at levels below those seen several weeks earlier. The depreciation of the Argentine peso against the US dollar during July may also have slowed purchasing activity, the source said.

"There are many factors involved. The Argentine peso has weakened considerably against the dollar, and that certainly affects prices," the trader said.

The source also said exporters are still trying to understand where the market will head in the coming weeks.

Market participants also pointed to a potential oversupply after elevated volumes entered Argentina in recent months. An industry participant said large volumes of chicken breast had been shipped to the country since May, contributing to the recent price weakness.

"I heard that a lot of chicken breast has entered Argentina since May," the source said. "That is a bearish factor."

Another exporter said the impact of restrictions on Brazilian chicken meat in the EU, scheduled to begin in September, may also be influencing the behavior of buyers and sellers across different markets.

"Europe has already been affecting prices in general," the exporter said.

Argentina's imports of Brazilian chicken meat increased significantly in the first half of 2026. Secex data showed shipments reached 24,866 mt during the period, up 135% year on year.

A third exporter said stronger shipments to Argentina were partly supported by elevated inflation and lower domestic poultry production, after a major producer reduced output.

"Export prices to Argentina were quoted at $2,900/mt a few weeks ago," another industry participant said. "Now they are quoted at $2,650/mt."

In Mexico, market participants also reported signs of weakening demand. According to another trader, some exporters temporarily suspended offers for new trades after a rapid deterioration in buyers' bid levels, preferring to wait for greater clarity on market direction.

"Prices have been falling across the board. The market is very volatile, and buyers are lowering their bids," a Brazilian exporter said.

According to the source, a combination of global economic uncertainty, inflationary pressures, geopolitical conflicts, and recent shifts in international trade flows has increased participant caution.

Brazilian exporters continue to monitor demand across Latin America and whether buyers can absorb additional volumes that can become available following the closure of the EU market for Brazilian chicken meat.

Platts is part of S&P Global Energy.