Shares of battered meat and poultry companies soared Tuesday (August 5, 2008) as grain prices eased on the CBOT leading investors to favor stocks of meat companies once again.

A 12-percent drop in corn futures recently has led to a rally in shares of meat companies as fears of high grain prices eroding profit margins dissipated. Shares of Pilgrim's Pride were up 18 percent to US$14.59 per share; Smithfield Foods shares were up nearly 11 percent and Tyson Foods saw shares climbing 7 percent.

The meat company stocks were also boosted by a general optimism in the market as oil prices declined and a report showed activity in the service sector fell less than expected last month.

The Dow Jones Industrial Average shot up 232 points, or just over 2 percent, to 11,516 in early afternoon trade.