Sanderson Farm Reportedly Exploring Sale

(RTTNews) - Mississippi-based poultry company Sanderson Farms, Inc. (SAFM) is considering selling the company, according to Wall Street Journal.

The rising demand for poultry across the world, coupled with a shortage of labor has increased the prices of the products, propelling the decision. Agricultural investment firm Continental grain is one of the many likely suitors for the company.

Sanderson is one of the top three food processors in the country and a deal with Continental may mean that the company will produce 15% of the chicken produced in the country. This will make Continental get a third place after Pilgrim's Pride.

The shares of the company, post the publication of the news, have climbed rapidly and are now 10.6% higher. The shares are trading at $184.25 in the after-market trading, $17.67 higher than $166.58 at the close.