Global poultry prices may “remain strong” in the next two quarters as world meat demand increases and supplies decrease in the United States and Brazil, according to a report from Rabobank International. Beef prices that climbed to a record this year will support poultry, Rabobank analysts said in a report on Tuesday.  U.S. wholesale choice beef prices climbed to $1.988 a pound on February 29, the highest since at least January 2004, according to USDA.

Brazil is cutting output after a strengthening real reduced demand for its exports, and U.S. chicken breast inventories are 13 percent smaller than last year, according to Rabobank.  Europe’s poultry industry should benefit from rising exports to Asia, Africa, and the Middle East, while the United Kingdom and Germany may have excess supplies, the report said.