Morgan Stanley Reports Gross Profit Margin In-line and Revenues for Sanderson Farms Higher than Expected

According to a research report this morning, Morgan Stanley reports revenues to be 3.3% higher than expected and revenue for Sanderson Farms

to be right in-line with estimate of 9/9%. Morgan Stanley explained, “We believe that F12 chicken prices are currently at peak levels, and that this may be misunderstood by bulls who take for granted that egg set cuts will continue to drive higher prices. Under normal seasonality, breast meat prices do not rise higher than they are in May, and in fact we saw breast meat prices decline from $1.60/lb to $1.52/lb last week.” Sanderson Farms closed Friday at $54.31 as Morgan Stanley maintains its Underweight rating.