UPDATE: BMO Capital Markets Downgrades Smithfield Foods to Market Perform on Corn and Pork Outlook

BMO Capital Markets lowered its rating on Smithfield Foods SFD from Outperform to Market Perform and reduced its price target from $27 to $22. BMO Capital Markets noted, "We downgraded SFD to MARKET PERFORM from OUTPERFORM as the heightened concern regarding the health of the corn (and soybean) crop coupled with the tepid fresh pork margin environment, likely will offset the strength in packaged meats. … First, corn fundamentals have materially changed over the past two to three weeks, as the recent hot, dry weather during the key corn maturation period has created a risk to yields. … Second, the hog price outlook is somewhat subdued reflecting ample supply, slaughter discipline (less hog demand), and seasonality." Smithfield Foods closed at $20.08 on Friday.