The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

In this May 3, 2009 file photo, Tyson Foods chicken products are displayed on the shelves of a Little Rock, Ark. grocery store.
In this May 3, 2009 file photo, Tyson Foods chicken products are displayed on the shelves of a Little Rock, Ark. grocery store.
(Danny Johnston/AP)

FINANCIAL TIMES

Tyson Foods wolfs down lower grain prices

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

Returns on Tyson Foods Inc. haven’t exactly been chicken feed. The stock is up more than 50 per cent year to date and nearly 100 per cent during the past 12 months. Tyson along with other meat processors was pressured during last year’s drought in the U.S., which raised the price of the grain these companies feed chickens, cattle and hogs. Now grain prices are falling in anticipation of a bumper crop. Last week, for example, only 2 per cent of the Midwest region was in drought, compared with 74 per cent a year ago, according to the U.S. Drought Monitor.