I've been reporting on these food producers since fund inception to give readers an idea of the coming inflation and adverse effects of the boondoggle that is ethanol. What I do find strange is how bad news from this group is coming as a "surprise" anymore - it has been increasingly bad all year and anyone who is paying attention could of saw this coming a long time ago. We are now at the point the chicken producers, for example, are now shutting down plants, letting go of employees (great for the economy) and trying to limit production since feed costs are through the roof. This will hopefully (for them) lead to higher prices - again great for the economy (aka the consumer)

Both Smithfield Foods (SFD) and Sanderson Farms (SAFM) just reported so let's take a look - as an aside Buffalo Wild Wings (BWLD) fell off the cliff this morning, I assume off the chicken producers results and/or Sanderson Farms CEO comments about casual dining weakness - which again I say "why the surprise?" The American consumer in the lower and middle class is struggling with all the cost of life increases - I continue to be struck that the upper 0.5% who do most of this day to day stock trading, simple do not get it. Even a year later. I did add a bit to BWLD as it fell 8% down to its 200 day moving average of $33, but if it breaks that level, we'll cut back. Two weeks ago these stocks (Panera Bread is another) could do no wrong as the "consumer was back!" and "commodity inflation is dead! input costs will crater! Cramer said so!" - today they get hammered. Nothing changed 2 weeks ago - nothing changed today - just program trading jumping in and out of sectors. This is nothing but a traders market - jump in, scalp a gain, and get back out. No place for investors.

• Pork producer Smithfield Foods Inc (SFD) and chicken producer Sanderson Farms Inc (SAFM) reported losses on Tuesday as sharply higher feed prices continue to weigh on the U.S. meat industry.
• Flooding in the U.S. Midwest this spring, combined with strong demand by exporters, livestock producers, and the makers of ethanol, pushed corn prices to record highs this summer.
• At Smithfield, a loss on hogs overshadowed much improved earnings in pork processing, which were more than double a year earlier due to strong exports.