Home / News / Livestock news / Smithfield an accidental 'genius' on grain hedges

Smithfield an accidental 'genius' on grain hedges

09/04/2012 @ 8:45am

Smithfield Foods said in its F1Q statement that favorable grain hedges should lead to lower hog-production expenses for raising hogs than the industry average as the US drought has sent feed costs up sharply.
 
"Suddenly our hedge positions make us look like we were all geniuses," CEO CLarry Pope said during the conference call.
 
"I promise you we were notWe can't predict the future and don't try." 
 
Smithfield also sees gains from its move to build up its packaged-food business--profit jumped 29% amid a 4% volume increase, Pope added
 
"We continue to believe that we still have significant upward potential in this business," he said.
 
But overall earnings slumped 25% amid weakness elsewhere at the company
 
Shares are up 1.5% at $19.60 after trading lower in premarket action.
 
(david.kesmodel@wsj.com, ian.berry@dowjones.com)

CancelPost Comment
MORE FROM DOW JONES NEWSWIRES more +

Wheat futures rise as cold, drought threaten… By: 04/17/2014 @ 3:51pm Wheat futures rose for the third time in four sessions on speculation that cold weather earlier…

Ukraine Upheaval Sparks Business Concerns By: 04/17/2014 @ 1:22pm Escalating military action and sanctions are forcing executives around the globe to map out…

Soybeans hit 8-month highs as processing… By: 04/15/2014 @ 3:31pm Soybeans jumped to the highest price in more than eight months after an industry report showed the…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Big Picture: CME Trading Weather