SAN FRANCISCO — Smithfield Foods shares dropped 4% to $17.59 Tuesday morning after Morgan Stanley downgraded the world's largest pork processor to underweight over margin pressure concerns. "When hog producers ultimately cut production to cover grain costs, fresh pork and packaged meat segment margins will likely suffer as even higher retail prices will be necessary to cover higher live hog costs," analyst Vincent Andrews wrote in a research note. Shares of meat companies have been taking a pounding as corn-futures prices have surged since mid-June and trade near $8 a bushel. Smithfield shares now down 27% since Jan. 1. By comparison, Tyson Foods is down 29% and Sanderson Farms is off 26%.
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