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Feeding Naked Chef’s Chickens Killing Biggest Bond Rally

Higher costs to feed chickens and pigs at Brazil’s Marfrig Alimentos SA are imperiling the biggest bond rally among Latin American food companies this year.

Yields on the Sao Paulo-based food maker’s $734 million of notes due 2018 have edged up 0.12 percentage point since reaching a 1 1/2-year low of 8.84 percent on Feb. 20. The securities had returned 17 percent this year before reversing course, more than double the advance for all comparable bonds issued by food companies in Latin America.