A look at Pilgrim's Pride's woes

Pilgrim's Pride Corp. said Thursday it expects to report a "significant loss" in its fiscal fourth quarter and is so sagged by debt it may not meet the terms of its loan agreements. Here's a look at the woes at the market-leading chicken producer:

LOW PRICES, OVERSUPPLY AND WEAK DEMAND: Meat producers' profits are squeezed because prices are low. This is because there's too much meat on the market and demand isn't keeping up with it. Pilgrim's Pride and others are trying to cut production to boost prices.

HIGH COSTS: The industry is facing high costs for animal feed, which is made with corn and soybeans. Those grains have jumped to record levels in the past year. And while the company tried to lock in lower costs with hedging, prices moderated and Pilgrim's Pride lost money in its quarter due to the hedging.

PREDICTIONS: The company hasn't specified how big of a loss it expects in the fourth quarter. Analysts polled by Thomson Reuters expect a loss of 89 cents per share for the quarter and a loss of $3.41 for the year.

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