According to the the Department of Agriculture, "U.S. corn and soybean crops were being harvested at a faster-than-average pace." Additionally, China announced on September 26 that "it will impose duties on U.S. broiler chicken products, potentially reducing poultry production and demand for chicken and feed."
China imposed a 105.4 percent duty on U.S. broiler chicken products, saying that companies in the U.S. have been dumping these chicken products at below market prices and causing losses to the Chinese poultry industry.
The poultry industry uses corn and soybean meal in its feed, and according to Dennis Gartman, an economist, "any attack upon poultry exports will push demand down swiftly. The "U.S. poultry industry uses about 100 billion pounds (45.4 million metric tons) of feed a year, according to USDA. About 60 percent of the average U.S. poultry diet is corn with another 25 percent from soybean meal."
To read the Bloomberg story, click here.
Posted: 09/29/2010
