Trend Analysis on Tyson Foods and Smithfield Foods: Feed Costs Looming
LONDON, January 23, 2013
LONDON, January 23, 2013 /PRNewswire/ --
Companies in the meat products industry, such as Tyson Foods Inc. (NYSE:TSN)
and Smithfield Foods Inc. (NYSE:SFD) closed out 2012 on a high note, as sales
and earnings were solid on strong domestic and international sales. StockCall
researchers have finalized the technical analysis on these two companies.
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Global demand in 2013 is expected to be robust. However, a recent rise in feed
costs could eat into companies' margins. Corn prices recently jumped,
following a report from the U.S. Department of Agricultural regarding
inventories. The report stated that inventories as of the beginning of
December were 17% lower than last year. The decline was in part due to
increased demand for corn as livestock feed, as well as a lower yield due to
the crippling drought last year.
While input costs may rise this year, companies in the industry are well
positioned to increase prices alongside rising feed costs, as global demand
continues to climb. With the middle-class populations of Brazil, India and
China all growing rapidly, demand for a protein rich diet is also increasing,
which bodes well for the industry moving forward.
Tyson Foods Inc. will be releasing its earnings on February 01 ^st before the
opening bell. In its last reported quarter, the company projected that sales
for fiscal 2013 would be up to close to $35 billion as a result of price
inclination which in turn would be caused by a projected slump in domestic
availability of protein and a surge in raw material cost. To access of free
technical analysis report on Tyson foods, sign up now at
Conversely, Smithfield Foods Inc. [ Free Technical Report on SFD ] ^[ ^1 ^]
projected improvement in its packaged meat margins for the upcoming quarter on
the back of product mix and bringing more focus on its core brands. It also
anticipates seeing pork demand in the U.S. climb in fiscal 2013 due to
elevated pork prices and a decrease in pork production worldwide.
1.Smithfield Foods Inc. Technical Analysis [
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