Brazilian meatpacker JBS SA on Tuesday forecast gains of $450 million this year related to lower grain prices, particularly corn, higher than guidance of $340 million given at the end of the first quarter, reported Reuters.

CFO Guilherme Cavalcanti revealed the estimate, expected to primarily benefit the company's pork and poultry businesses, as JBS discussed quarterly results with analysts on a conference call on Tuesday.

JBS reported a second-quarter loss on Monday, citing the negative effects of a global chicken glut and tighter margins for its beef business in the US related to a cattle supply shortage on its main market.

Its shares rose 3.66% in mid-morning trading as some investors perceived results as better than feared.

In a note to clients, JPMorgan analysts predicted that JBS' good performance in Australia and a better outlook for grain prices would potentially be good for the stock in Tuesday's session.

CEO Gilberto Tomazoni said companies are gradually adjusting chicken supplies in the US and Europe, improving pricing prospects.

He said prices had already begun to rise on chicken meat sales to Gulf countries, "in a very clear sign of change".

In relation to beef, management told analysts the outlook is not going to improve soon, which is likely to leave beef processors with unused capacity in the US.

"There is no doubt in 2024 cattle supplies will remain tight," Global President of Operations Wesley Mendonca Batista Filho said. "There is no doubt companies will operate using less capacity."

In the US pork market, a drop in prices in the second quarter is not expected to last long, Filho said, citing the relatively stable nature of the pork business in the US over time.

He said current excess pork supplies partly stems from an increase in production to supply the Chinese market, which in 2018 reported an outbreak of African swine fever, pushing it to import more.