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Call to the Floor: Sanderson Farms

Tuesday, 24 May 2011 | 5:43 PM ET

Sanderson Farms landed on the trader radar Tuesday after the company cited surging commodity costs as challenge in the months ahead.

"We expect grain prices to remain high and volatile for at least the rest of this year, as there is no margin for error with the 2011 grain crop," said chairman and CEO Joe Sanderson Jr, while talking about the company’s latest earnings report. "While market conditions remain challenging, our operating performance during the second quarter was solid."

Sanderson is hardly the first firm to cite rising commodity costs as a potential headache. Last week Aeropostale and Gap talked about rising cotton prices as a headwind.

How should these developments impact your trade? Don’t make a move until you check out our exclusive conversation with CEO Joe Sanderson. Watch the video now!

Sanderson Farms CEO Speaks
Sanderson Farms reported a fiscal Q2 loss of $16.3M due to higher feed costs, with Joe Sanderson, Sanderson Farms CEO, and Farha Aslam, Stephens. "With the current economic conditions affecting consumer behavior, we expect to see continued weakness in food service demand," he says.






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Trader disclosure: On May 24, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Terranova owns (XOM); Terranova owns (KSS); Terranova owns (CVI); Terranova owns (OXY); Terranova owns (TM) ; Terranova owns (BJ); Terranova owns (DIS); Terranova owns (PFE); Terranova owns (V); Terranova owns (HPQ); Terranova owns (FLX); Terranova owns (JPM); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (VRTS); Terranova is short (DELL); Karabell owns (AAPL); Karabell owns (GOOG)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
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Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & URL PLC
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For Zachary Karabell
River Twice Capital is short (SHLD)
River Twice Capital is short (GS)
River Twice Capital is short SPY, QQQ

For Brian Kelly
Accounts Managed By Brian Kelly Capital are long (SLV)
Accounts Managed By Brian Kelly Capital are long (VLO)
Accouts Managed by Brian Kelly Capital are long (TLT) calls
Accounts Managed By Brian Kelly Capital are long (ANDE)
Accounts Managed by Brian Kelly Capital are long (MCP) calls
Accounts Managed By Brian Kelly Capital are long (TLT) Calls
Accounts Managed By Brian Kelly Capital are long Australian Dollars
Accounts Managed by Brian Kelly Capital are long (HOC) calls
Accounts Managed by Brian Kelly Capital are long yen

For Dan Dicker
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