Shares of Smithfield Foods rose 10 percent on Tuesday after a financial analyst predicted that a decrease in the supply of pigs would lift pork prices. A report from the Associated Press cited J.P. Morgan analyst Ken Goldman as saying, "Pork producers, such as Smithfield Foods, are cutting back on how many pigs they produce, causing a reduced supply that will lift pork prices in stores."
Goldman also said not to expect consumers, who are feeling the pinch from a softening U.S. economy, to push back on higher prices. However, Goldman added that the industry isn't out of the woods yet.
"The industry still needs to work through the headwind of feed costs," Goldman wrote in a client note. "Though corn and soy have come well off their peaks, both remain high year-on-year."
Other meat producers also saw higher stock prices. Pilgrim's Pride’s stock jumped 17 percent, shares of Sanderson Farms rose 5 percent and shares of Tyson Foods rose 7 percent.