JPMorgan Warns Brazil Poultry Glut Will Squeeze JBS Margins in H2
JBS sits 18% above its 52-week low of $11.49.
Summary
JPMorgan is flagging a poultry supply glut in Brazil that will pressure JBS margins in the second half of 2026. The bank surveyed over 10 small and mid-sized producers, all expecting profitability declines as chicken supply remains too high, domestic demand weak, and beef/pork prices fall. Farmers are raising 2.3% more chicks and slaughter is up 2.5%, though some are sending lighter birds to market — an early sign of adjustment. Export margins are still healthy but face headwinds from a stronger currency, geopolitical tensions, higher freight costs, and uncertainty over a potential EU ban. This follows a tough Q1 where JBS net profit fell 56%, and recent operational challenges including China import suspensions and a plant closure. The note adds a direct margin warning to an already pressured outlook.
At the time of this announcement, JBS was trading at $13.57 on NYSE in the Trade & Services sector, with a market capitalization of approximately $14.6B. The 52-week trading range was $11.49 to $18.65. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.