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Clipped Wings: US Poultry Industry Falls

by 5m Editor
10 June 2008, at 8:45am

US - Poultry industries across the US took a big fall yesterday, with stocks in Pigrim's Pride, currently the largest US poultry industry, taking a fall of 12.4 per cent.

The sudden fall has been attributed as a reaction to higher corn prices and weak chicken prices, analysts said.

Kenneth Zaslow, a food analyst at BMO Capital Markets, predicted that Pilgrim's Pride would post a fiscal year loss of $3.53 per share, higher than his previous forecast for a loss of $2.72, reports Reuters India.

According to Reuters India Zaslow said in a note to clients that the chicken industry had not done enough to cut production at a time when feed costs were increasing.

Pilgrim's Pride shares fell to $18.99 early on Monday, their lowest in two months. In late afternoon trading they were down 9.94 percent at $19.49.

Shares of No. 2 producer Tyson Foods Inc were down 3.6 percent and No. 4 Sanderson Farms Inc shares were down 5 percent. No. 3 producer Perdue Farms Inc is privately held.

View the Reuters India story by clicking here.

5m Editor