Benson Hill, Inc. (BHIL), a leader in seed innovation, is witnessing a significant decline in its premarket stock price, which dropped by 27.3% to $2.87, following a recent announcement regarding its Ultra-High Protein, Low-Oligosaccharide (UHP-LO) soybean meal.
The company's stock experienced a premarket volume of 545,238 shares, marking a notable reaction to the news despite its positive implications. The latest feeding trial conducted in collaboration with Tyson Foods yielded impressive results, indicating that Benson Hill's UHP-LO soybean meal could replace conventional soybean meal in poultry diets without sacrificing animal performance or economics.
These findings are significant for poultry producers as the UHP-LO soybean meal not only offers a high-performance alternative but also brings down feed costs. The trial showed that broilers fed with UHP-LO soybean meal exhibited equivalent body weights and feed conversion ratios compared to those fed conventional soybean meal, demonstrating its efficacy.
According to Matt Begemann, Senior Director of R&D at Benson Hill, "This commercial trial shows how Benson Hill's UHP-LO soybean meal is helping redefine poultry feed. The results confirm how Benson Hill's UHP-LO soybean meal can generate higher nutritional and economic returns." This sentiment highlighted the potential of the product to enhance profit margins for poultry integrators and producers.
While the trial results signal positive developments for the company and its partners, the current market reaction may reflect broader market sentiments or investor concerns. The drastic premarket price change suggests that investors are reacting to various factors that might not align with the optimistic findings from the Tyson Foods trial.
As Benson Hill strives to expand its presence in the animal feed sector, its recent achievements reinforce the value of its innovations. However, navigating market perceptions will be critical for the company as it moves forward. Investors and stakeholders are encouraged to stay informed about the ongoing developments surrounding Benson Hill and the impact of its innovative feed solutions.
