Shares in major US poultry companies jumped after China indicated it could reopen its market for American chicken.
Earlier this week it was announced that the US and China were close to finalising “phase one” of a trade deal, and that both parties had made concessions on poultrymeat.
The US would accept cooked poultry products from China, while China would lift a ban on American chicken.
We’re looking probably to be ahead of schedule to sign a very big portion of the China deal.” - US president Donald Trump
He is set to meet Chinese president Xi Jinping at a summit in November.
Progress in trade war
It marks progress in a trade war between the world’s 2 biggest economies that has now lasted more than 18 months.
Oversupply in US poultry market
For poultry markets, the move could go some way to easing the oversupply that the US market has faced this year.
Alternative protein source for Chinese
And in China, consumers are searching for alternative proteins as African Swine Fever decimates its national pig herd.
Share price jumped
Sanderson Farms shares gained as much as 16%, the biggest intraday jump in more than a decade, while Pilgrim’s Pride and Tyson rose as much as 8.3% and 5.1%, respectively, according to Bloomberg.