nnuut
Moderator | TSP Legend
You have a bad case of selective reading and comprehension.
Well, there you go Nnuut-
You don't suppose the higher price of chickenfeed is due to the increase in chicken production, those chickens who are eating it, thereby causing an increase in chicken BLOATED INVENTORY, do you?
Nah. That's just chickenfeed.
Jones also cut Tyson as the stock is close to her $18 stock-price target. She cited grain costs and weak prices for chicken breast meat and wings, which are being affected by bloated inventories.
In a separate report Friday afternoon, the U.S. government said December inventories of frozen chicken shot up 25% from the same month in 2009 — a bearish signal for future prices, according to Jefferies & Co. analyst Jeff Farmer.
“The bottom line is that a 25% increase in chicken cold-storage levels suggests that chicken prices are unlikely to rally in coming months,” Farmer said in a note to clients. Chicken prices typically go up around Memorial Day weekend, as consumers kick off for the summer grilling season.