Rising Chicken Prices Could Boost Tyson Profits
ARKANSAS - Tyson Foods Inc. could likely benefit from rising chicken prices in the near term in spite of surging corn prices, said Farha Aslam, industry analyst with Stephens Inc.
29 December 2006
2 minute read
Tyson CEO Dick Bond predicted positive first quarter results for the three month period to end Jan. 31 during the company's November earnings call, and said then higher grain prices would have to passed on to consumers.
Aslam agreed, noting that consumers will bear some of the cost of higher feed prices. Wholesale chicken prices have risen by more than 30 percent in the last sixty days, according to statistics from the U.S. Department of Agriculture.
In a Dec. 27 report Aslam noted boneless skinless breast meat is trading at $1.28 per pound, up 33 percent from last year and up 40 percent from the low of near 90 cents per pound reached in January. Aslam and Stephens Inc. provide investment banking services for Tyson Foods and expect to receive compensation for those serves provided to the company.
Source: The Morning News
Aslam agreed, noting that consumers will bear some of the cost of higher feed prices. Wholesale chicken prices have risen by more than 30 percent in the last sixty days, according to statistics from the U.S. Department of Agriculture.
In a Dec. 27 report Aslam noted boneless skinless breast meat is trading at $1.28 per pound, up 33 percent from last year and up 40 percent from the low of near 90 cents per pound reached in January. Aslam and Stephens Inc. provide investment banking services for Tyson Foods and expect to receive compensation for those serves provided to the company.
Source: The Morning News
