Cornís Big Plunge Helps Chicken Producers, Hurts Farm Equipment
††† Grain futures fall by limit as report shows bigger acres
††† Itís bad news for farmers, but means cheaper feed for chickens
By Lydia Mulvany, Bloomberg†
August 12, 2019
The steepest drop in corn prices in six years rippled through the equity market on Monday, pushing up shares in chicken companies while beating down tractor makers.
Poultry producers Sanderson Farms Inc. and Pilgrimís Pride Corp. jumped after a U.S. government report showed bigger-than-expected planted acres for corn, causing a rout in futures that signals cheaper feed for animals.
Chicken companies are already benefiting from a hog-killing disease sweeping through Asia thatís setting up poultry as the prime protein substitute. Demand is also improving with U.S. fast-food restaurants gearing up for more chicken sandwiches on menus.
Sanderson gained as much as 4.3% while Pilgrimís advanced 1.3%. Even Tyson Foods Inc., whose shares slumped after a fire at one of its major plants, recovered after the grain news. The Tyson fire pushed cattle futures down by the exchange limit.
Machinery stocks went the other way...
more, including chart†