Fresh and chilled chicken were flying off the supermarket shelves and market stalls in Singapore, after the announcement that it would be losing supplies from one of its main supplier, her neighbour up north, for at least a-month from June 1.

My chicken rice might look like below (1st picture). While the other major source of chicken (likely frozen, but still the same meat) is from Brazil, maybe there is more room to increase supplies from USA, who only made up 8% in 2021.

 Even in US, price of chicken feed (+14%), affected by the Ukraine-Russia conflict and demand from restaurant dining has soared, leading to highest price in years at $4.10/pound (+34%) according to USDA/Bloomberg (2nd picture), and a windfall for poultry producers.

 Last Fri May 27, the 3rd largest poultry producer in US, Sanderson Farm, Inc. $Sanderson Farms(SAFM)$reported revenue $1.54B (+36.3% Y/Y) and EPS $14.39 (+231.6% Y/Y), both stunning beat of expectations. I’s share price shot up 6.99% in one day.

Looking at the stock price, it has a history of massive stock rises (+25,02 to +60.77%) and falls (-9.95 to -45.05%), so there might be more upside to the stock post earnings, and maybe later a steep drop?

This presents trade opportunities to go Long $Sanderson Farms(SAFM)$and then ride Short trades down in coming weeks. These are short term, temporary trades, like the shortage of chicken which are (hopefully) temporary!