Morgan Stanley downgrades Smithfield
date:Aug 09, 2012
Traders are concerned that as feed prices continue to increase, hog producers will cut production to cover the costs. There are signs this is already happening. Supplies of hogs typically increase in August, but producers, pressured by surging feed costs, are selling animals they would normally keep for breeding. As hog producers cut production, traders fear that retail prices will rise to cover higher live hog costs, pressuring margins for fresh pork and packaged meat.

Shares of meat and poult
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