Chicken breast cost rises, wing cost fallsChicken breast cost rises, wing cost falls

In this weekly Commodities Watch column, John T. Barone, president and commodities analyst for Market Vision Inc., offers a snapshot of the state of commodities for restaurants.

Call it role reversal: The cost of chicken breast is rising while that of chicken wings is decreasing.

Boneless skinless chicken breast is at a 9-year high of $1.84 per pound with a cost increase of $.31 in just the past month. Strong retail and foodservice usage (i.e., KFC’s new boneless offerings) should keep prices well supported. Highs should reach nearly $1.90 this month before settling back into the $1.70s in June.

Wings, at $1.38, are now at a 2-year low and $.76 below highs reached in early February surrounding the Super Bowl. Wing inventories, at 74.9 million pounds, are 125.8 percent higher than a year ago and 98.1 percent above the 5-year average. These numbers reflect dampened consumer demand due to earlier sky-high prices, which may have forced many restaurant operators to pull wings from their menus.

Chicken wings could hit seasonal summer lows in the $1.20s, but a potential McDonald’s wing rollout could push prices higher.

Contact John T. Barone at [email protected].