Meat producers such as Smithfield Foods (SFD +0.3%), Tyson (TSN -0.3%), and Pilgrim's Pride (PPC...
Wednesday, July 11, 2012, 3:37 PM ETMeat producers such as Smithfield Foods (SFD +0.3%), Tyson (TSN -0.3%), and Pilgrim's Pride (PPC -5.5%) are on watch to see how well their hedges worked over the last month to protect against higher prices for corn and soybean meal. Push finally comes to shove for the industry after it promised to deliver better returns than it did during 2008 and 2009 when hedges flopped and companies saw wide losses on fluctuating prices. For better or worse, things will be simpler for Sanderson Farms (SAFM -0.8%) with its policy of forsaking hedging to buy feed at spot-market prices.
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