Goldman Sachs Remains Above Consensus on Sanderson Farms

“We remain above consensus for Sanderson Farms, Inc. SAFM in FY12 at $4.09 vs $2.86 as we expect 10%-15% chicken price inflation as supply cuts flow through,” Goldman Sachs wrote in a report this morning. “Recent data points suggest this process is under way, with pullets -8% yoy and broiler chicks placed -3%. Moreover, feed costs should decline next year with SAFM minimally hedged as of late May.” Sanderson Farms closed Wednesday at $47.17.