Second Newcastle Outbreak Hits Santa Catarina, Brazil's Top Poultry Export Hub
JBS is trading near its 52-week low of $10.61 (14% above the low).
Summary
Brazil's Agriculture Ministry confirmed a second Newcastle disease case in Santa Catarina, this time at a poultry farm in Coronel Freitas, after last week's first case at a turkey farm in Nova Itaberaba. The new case sits inside the existing restricted zone, so containment only needs a small boundary adjustment, and culling plus epidemiological work is underway. Santa Catarina produces roughly 15% of poultry output in the world's largest chicken exporter, and China and Saudi Arabia have already halted imports from the state while Mexico banned nationwide. For JBS this compounds an already rough stretch: a $102 million Q2 net loss on record cattle costs, a JPMorgan warning about a Brazilian poultry glut pressuring second-half margins, and a pending all-stock bid for the 18% of Pilgrim's Pride it doesn't own.
At the time of this announcement, JBS was trading at $12.09 on NYSE in the Trade & Services sector, with a market capitalization of approximately $13.3B. The 52-week trading range was $10.61 to $18.65. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.