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iPath Bloomberg Livestock SubTR ETN Message Board

  • lestah lestah Jun 26, 2008 1:55 PM Flag

    Fewer chickens = higher prices

    I realize that COW is not at all invested in the price of chicken, but the following gives an idea of what we're gonna be seeing across all livestock production:

    12:00PM Sanderson Farms announces delay of construction for new poultry complex in North Carolina (SAFM) 38.68 -0.54 : Co announced that its Board of Directors has approved delaying the construction and start-up of the Company's new Kinston, North Carolina, poultry complex. Sanderson Farms previously announced plans on April 24, 2008, to invest approximately $126.5 million for construction of a new feed mill, poultry processing plant and hatchery. "We believe it is in the best interest of Sanderson Farms and our shareholders to delay construction of the Company's proposed Kinston, North Carolina, project. In light of escalating prices for corn and soybean meal, our primary feed ingredients, it has become increasingly difficult to predict our future input costs. Because a third of the United States corn crop is now expected to be used to produce ethanol, the poultry industry and other animal feeders are being challenged by increasingly tighter supplies of grain and historically high prices. The recent flooding in the Midwest has further affected this season's corn and soybean crops, creating more uncertainty. While our balance sheet remains strong, we believe it is prudent to be conservative with our working capital and our balance sheet at this time."

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