A CHICKEN RUN
Chicken stocks have been having a run lately. In the last six months we’ve seen Astral up by 15%, Sovereign Foods gaining some 28% and Country Bird almost 20% higher. There are a few drivers here, with reports that the industry could get a 40% import duty against certain EU countries accused of dumping, but also a maize price that has been moving lower. Maize is a major cost input in the poultry market. Astral also has a feed operation, and the other producers certainly benefit from lower prices. The benefits are likely still coming, and any confirmation regarding the potential 40% import duty would help the prices even further. The industry i is still in a tough sp space, but is starting to look interesting f for cyclical investors investors. the commodity) changing, which ultimately brings even more risk to the project. The bottom line is that most of these miners never deliver on their massive promises. It is an investing space I stay away from.