(Bloomberg) -- Chicken companies have been having a good year, and things just got even better.
A U.S. government report Monday showed bigger-than-expected planted acres for corn, causing a rout in futures that could well be the grain’s worst day in at least six years. That means cheaper feed for animals.
Chicken companies are already benefiting from a hog-killing disease sweeping through Asia that is setting up chicken as the prime protein substitute. Demand is also improving with U.S. fast-food restaurants gearing up for more chicken sandwiches on menus.
Pilgrim’s Pride Corp. advanced as much as 1.3%, with the shares up 87% this year. Sanderson Farms Inc. gained as much as 3% while Tyson Foods Inc (NYSE:TSN)., whose shares slumped after a fire at one of its major plants, recovered some ground after the grain news. The Tyson fire pushed cattle futures down by the exchange limit.
Machinery stocks went the other way. Lower corn prices means less farmer income, which can translate into less willingness to make major purchases, like a tractor that costs six figures. AGCO Corp. fell by the most in a year, while Deere & Co. lost as much as 4.5%.
