Middle East poultry market stalls as sellers hold, buyers wait to see direction for October

Middle East poultry trading has stalled as sellers hold offers while buyers remain reluctant to bid, expecting prices to weaken for October loading despite September positions being largely sold out among major Brazilian suppliers, market participants said.

Platts assessed Chicken Breast CIF Middle East at $2,570/mt Aug. 12, with offers heard at $2,650-$2,800/mt for UAE destinations. The price was flat from Aug. 10. Participants said the gap between offers and tradable values reflected a market where sellers were unwilling to aggressively lower prices but buyers showed little urgency to secure additional volumes.

"Market is not bidding," a Dubai-based trader said.

Several participants said September loading positions at major Brazilian suppliers were already largely committed, but the tightening availability had failed to generate stronger buying interest.

"Most of them are sold out. No bookings for September," a one major processor said, adding that clearer indications for October availability were not expected until later in August.

Instead of chasing remaining September cargoes, buyers are increasingly waiting for October loading programs, with some expecting stronger competition among suppliers to push replacement values lower.

"Prices are expected to drop next month for October shipment onward," one UAE-based buyer said.

The standoff was also visible across other poultry cuts. Platts assessed Chicken Leg Quarters CIF Middle East at $1,430/mt Aug. 12, down over the same period, with offers around $1,450/mt attracting limited buying interest.

Shawarma sellers continued to resist lower indications, with bids heard around $2,500-$2,600/mt against seller expectations closer to $2,700-$2,800/mt. Market participants described those bids as too low to generate business. Platts assessed Chicken Shawarma CIF Middle East at $2,700/mt Aug. 12, down $40/mt from Aug. 10.

Griller values also remained under pressure. Platts assessed Chicken Griller CIF Middle East at $2,120/mt Aug. 12, $10/mt lower from Aug. 10.

Participants said sellers were also showing little willingness to push additional Brazilian products aggressively into the region following recent EU trade restrictions.

"Sellers are waiting rather than pushing more into the market after the EU ban," another processor said.

The current positioning comes ahead of a period when Middle East poultry demand would traditionally begin to strengthen in the fourth quarter. However, participants said buyers remained sufficiently comfortable with inventories to delay procurement and test whether October offers move lower.