More chicken news: Pilgrim downgraded. Still long SAFM.
Thoughts anyone?
biz.yahoo.com
Nelson's downgrade comes even though Pilgrim's Pride last week forecast far better-than-expected fourth-quarter earnings, lifted by a $23.8 million, or 22-cent-per-share, recovery from an insurance policy. Even without the gain, the company still sees a quarterly profit above Wall Street targets, but did not give a reason for its increase...
The industry began building an over-supply of poultry in June, when consumer demand sagged as average prices neared 85 cents per pound at their peak in early July. For comparison, average broiler prices were about 65 cents per pound in the year-ago period.
Since then, however, both average prices and the cost of feed -- which some livestock producers have blamed for thinning margins -- have fallen sharply, but poultry farms are worried that prices could continue sliding.
Despite posting a soaring third-quarter profit in late August, rival Sanderson Farms Inc. reduced its full-year view on indications of an increase in chicken inventory and softer prices toward the year's end. |
