Sanderson Farms Inc. shares dropped 4% on predictions that the company's third-quarter losses will be larger than originally forecast due to falling poultry prices and rising feed costs.

Jefferies analyst Jeff Farmer estimated that the company will lose $1.25 per share in the third quarter, driven by an 11% decline in chicken prices and a 36% increase in feed costs, year over year. Sanderson's stock fell 4.1%, to $38.78, in morning trading on August 22. According to Farmer, the company retains its "Buy" rating.

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Sanderson is scheduled to release its quarterly results on August 25. The company has scheduled an online simulcast of its third-quarter earnings conference call for 10 a.m. CST, with an online replay available through September 1. Links to the event may be found at www.sandersonfarms.com and www.earnings.com.