Tyson Foods Inc., the biggest U.S. meat processor, raised its earnings forecast for the year citing healthy supply of cattle and hogs, and reported record high quarterly margins helped by lower feed and livestock costs.

Shares of the company were up 3 percent at $69.13 on Monday, after touching a record high of $70.44 in early trading.

Tyson expects good cattle supply through the summer and into 2017 for its beef business, its largest, Chief Executive Donnie Smith said on a conference call.

Livestock costs are falling as U.S. farmers build up their cattle herds, which hit a 63-year low in 2014 because of a drought.

This helped prop up beef margins to 1.3 percent in the second quarter ended April 2, compared with a 0.5 percent margin decline, a year earlier.

Margins in its chicken business touched a record high of 12.7 percent, as it saved $80 million from lower feed costs. Tyson said it expects margins in the business to come in above 12 percent for 2016.

Feed costs have been falling in the United States due to a global glut of corn and soybeans that has kept grain prices depressed for three straight years.

The company said it expects margins in the chicken business to come in at a normalized range of 9-11 percent as it is now selling more branded products and purchasing about 10 percent of its chicken supply from the open market.

Tyson, whose brands include Jimmy Dean, Hillshire Farm and Ball Park, raised its forecast for full-year adjusted earnings for the second time to $4.20-4.30 per share from $3.85-$3.95 per share.

Net income attributable to Tyson rose to $432 million, or $1.10 per share, in the second quarter, from $310 million, or 75 cents per share, a year earlier.

Excluding items, the company earned $1.07 per share.

However higher supply of cattle and pork led to a drop in average sales prices resulting in an 8 percent fall in total sales to $9.17 billion.

Analysts on an average had expected earnings of 95 cents per share on revenue of $9.04 billion, according to Thomson Reuters I/B/E/S.

Shares of the Springdale, Arkansas-based company, founded in 1931 during the Great Depression, had risen 26 percent this year.