SAO PAULO, Aug 15 (Reuters) - Brazilian food processor

BRF SA ( BRFS ) is hopeful China and Europe will resume buying

chicken products "in a matter of days or weeks" as local

authorities controlled a bird flu outbreak that triggered trade

bans in the second quarter.

In a conference call about BRF's quarterly results,

management also noted lower grain prices, corn in particular,

will reduce production costs and widen margins during the third

and fourth quarters.

(Reporting by Ana Mano; Editing by Chizu Nomiyama )