June 3, 2011

Shares of Pilgrim's Pride decline

Chicken producer Pilgrim's Pride (PPC) plummeted 6.3% on Thursday (Jun 2), reaching a 52-week low of US$4.47/share.

Pilgrim's and shares of rival producer Sanderson Farms (SAFM) have been facing selling pressure. Investors are worried about too much supply as poultry prices continue to remain weak and feed-grain prices are expensive.

Over the last month, Pilgrim's stock is down 20%, while Sanderson shares are off 8% over the same period. In Thursday (Jun 2) afternoon trades, Sanderson slipped 2.7% to US$42.45.