There has been a big market change since the start of 2016
Reductions in supply from China, the US and Brazil, and lower feed prices meant the global poultry industry was on the road to recovery, according to Rabobank.
There had been a big market change from the first months of the year, when global markets were flooded by supply as a result of the avian influenza outbreaks.
The return of the US in global trade has led to a competitive market, analysts said.
Chinese production was expected to reduce by 5 per cent this year and by up to 15 per cent next year due reductions in breeding stock following the avian influenza outbreak in key exporters the US, UK, France and the Netherlands.
Rabobank animal protein senior analyst Nan-Dirk Mulder said: “Market conditions will be more bullish in the coming months, especially in China, Brazil, the US and India, while the EU and Indonesia will maintain their relatively good performance.”
A large US crop and good conditions in the Black Sea region meant feed costs were expected to fall.
Brazil and the US have both made the decision to reduce supply growth to help support prices.
Increasing supply from other meat proteins also created greater competition in the US market and Brazil has been challenged by a weak domestic market due to high feed prices.
Russian exports were expected to double this year to 150,000 tonnes.
Russia recently made an agreement with China and it has a clear proximity advantage, compared to exporters in the Americas.
Mr Mulder said: "Russia’s market conditions are gradually improving, thanks to limited supply growth, better economic conditions and fast-growing exports."
Thailand was also set to benefit from the tight market in China.
China’s input costs were relatively high, which should make Thailand more competitive in shared export markets.
EU exporters with direct access to China, such as Poland, were expected to benefit from the bullish Chinese market.
However, there have been EU concerns over a potential safeguard South Africa has been considering on EU imports as it claimed the increasing volume of imports had challenged its local industry margins.