Shares of major publically-traded meat and poultry processors soared on Tuesday as tumbling grain and soybean prices led traders to react positively to the prospect of lower livestock feeding costs.

In early afternoon trade, shares of Pilgrim's Pride were up 18 percent at $14.59 per share; Smithfield Foods shares were up nearly 11 percent at $24.66 per share; and Tyson Foods shares were up over 7 percent at $16.13 per share.

Corn futures prices, which have surged 59 percent in the past year, have tumbled 12 percent over the past four sessions at the Chicago Board of Trade. Soybeans, which have risen 56 percent in the past year, have declined by over 8 percent in the past four trading sessions.

"The entire protein sector is benefiting from a decline in grain prices," Stephens Inc. analyst Farha Aslam told Bloomberg.

The meat company stocks were also boosted by a general surge on Wall Street as oil prices declined and a report showed activity in the service sector fell less than expected last month. The Dow Jones Industrial Average shot up 232 points, or just over 2 percent, to 11,516 in early afternoon trade.

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