This divide is perhaps seen most clearly in Wall Street’s expectations for pork producer Smithfield Foods and U.S. chicken processors Sanderson Farms and Pilgrim’s Pride.
Global pork supplies are tight, prices for bacon and sliced deli ham are up at supermarkets, and U.S. pork exports are growing. On Wednesday, Deutsche Bank upgraded Tyson Foods to a buy, noting that Tyson’s pork business will help insulate the company until the chicken market turns.
On top of that, live hog prices have increased and pork packer margins are strong, helping to counter the surge in feed-grain costs.
Industry forecasters expect the 88% pop in corn prices over the last 12 months will keep smaller hog producers from raising too many pigs, keeping supplies tight and bolstering Smithfield’s profit.
To read the rest of the story, please go to: MarketWatch
