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    MARKET EDGES

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Recently, Putin accused the US of backing Georgia, and as a result he put the squeeze on the US chicken processors by banning exports from 19 US plants.

According to the FT, Dick Cheney, the US vice president, pledged on Thursday that Washington would stand behind Georgia, helping rebuild the country’s economy and promoting Georgian efforts to join NATO to protect against Russian aggression. If I’m a CEO of one of the major chicken processors in the US, I could not be happy with the Bush Administration. If Putin is punishing the US chicken processors because of our stance on Georgia, the future of that export market can’t be good.

Today in NYC, the CEO of SAFM said the loss of Russia as an export would be devastating to the industry. We also learned today that TSN is increasing its liquidity position by selling equity. Why would TSN be increasing it liquidity position as this point in the cycle? Interesting timing on the part of TSN!

  • I’m taking the cynical view of this move….