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What: Shares of alliterative poultry-products producer Pilgrim's Pride
So what: The USDA reported a higher corn supply than expected, sending corn prices down and heavy corn users skyward. Pilgrim's rivals Tyson Foods
Now what: I find Pilgrim's jump somewhat curious under these conditions. After all, Pilgrim and Tyson hedge their corn prices to a much greater extent than Tyson does, yet Pilgrim is the bird that soars on positive pricing news. Are investors assuming that the company will lock in the new, lower corn prices for months on end? I'd keep an eye on this turkey and its one-star CAPS rating, but it's not a good time to back up the truck.
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Fool contributor Anders Bylund holds no position in any of the companies discussed here. He doesn't even like chicken. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.