Poultry Producers Braced for Another Feed Cost Spike
Poultry producers in the US are bracing for another spike in feed costs due to drought conditions across the country's midsection. The price of corn is expected to average $5.00 to $5.50 per bushel, a $1 increase from the previous season. This significant jump in feed costs will affect up to 70% of broiler and turkey production costs.
The US Department of Agriculture (USDA) has lowered its projected average U.S. corn yield for the current year to 178.5 bushels per acre, down from 180.7 bpa last month. This decrease is largely due to drought conditions that worsened from July through September. The USDA also reported a significant decline in crop quality, with good or excellent ratings falling from 67% in July to 57% by mid-September.
The limited carryover stocks mean little flexibility in supply projections, putting intense pressure on poultry integrators to stay on top of trends and prepare accordingly. With feed being the most volatile input for these producers, a bull cycle for feed input markets is rapidly becoming one of the top storylines of 2026.