UPDATE: Morgan Stanley Downgrades Archer Daniels Midland and Tyson Foods

According to a research report released Thursday, Morgan Stanley has downgraded Archer Daniels Midland

and Tyson Foods

from Overweight to Equal-weight and Equal-weight to Underweight, respectively. In the report, Morgan Stanley said, "Entering typically hot & dry July and August, we see real risk that i) the US crop gets worse than consensus expects; and ii) higher grain prices could both last longer – and push "normalized" EPS power out farther than consensus expects." Archer Daniels Midland closed Wednesday at $27.66, while Tyson Foods closed at $17.06.