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Avian flu not a market mover, at this point

(Photo courtesy nuformdirect)

Market analyst Rich Nelson with Allendale says, at this point, the outbreak of avian flu on a Tennessee broiler farm is not a major market moving event.

“I don’t think it’s that big of an issue beyond the headlines scare,” Nelson says. “From our perspective, this probably isn’t going to see any brand new bans or export restrictions, beyond South Korea and maybe one or two others, than what’s already been in place here.”

But Nelson says that could change if the disease were to spread.

“It’s not yet a major panic in terms of production, obviously—and certainly from the U.S. consumer standpoint, we’re probably not going to see any real pushback on that side,” he says. “But it is a troubling issue in that, yes, we’ve got it back in the U.S., and this could be a story for later on in 2017.”

Nelson says continued outbreaks of avian flu could impact feed markets, including corn and soymeal.

AUDIO: Rich Nelson

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