CORRECTED - UPDATE 3-Pilgrim's Pride cuts chicken output

(Corrects to show that improvement in revenue is 12 to 15 cents per pound, not 12 to 15 percent, paragraph 4) (Adds that largest U.S. producer, paragraph 1; adds CEO, analyst comment, details; updates share prices; adds byline)

By Bob Burgdorfer

CHICAGO, March 12 (Reuters) - Pilgrim's Pride Corp (PPC.N: Quote, Profile, Research, Stock Buzz), the largest U.S. chicken producer, said on Wednesday it will close a chicken processing complex and nearly half of its U.S. chicken distribution centers as it copes with soaring feed costs and an oversupply of chickens.

The news sent Pilgrim's Pride shares, as well as those of other chicken companies, higher on the theory that less production will benefit the chicken industry.

"Clearly this news is positive for the group," Pablo Zuanic, food analyst at JP Morgan, said in a research note. "We expect by the summer combined cutbacks of about 3 percent by the industry."

Zuanic estimated the industry cutbacks could improve revenue per pound industry-wide by 12 to 15 cents.

In an interview with Reuters, Pilgrim's President and Chief Executive Officer Clint Rivers said closing the processing complex will reduce the company's production volume by about 2 percent.

The company plans to close its chicken processing complex in Siler City, North Carolina, as well as six of its 13 U.S. chicken distribution centers.

"I'm not surprised given the unusually high price of grain, which is restricting the ability to sell chicken domestically," Paul Aho, an economist with the consulting firm Poultry Perspective, said of the production cuts.