Hog futures rise under US pilot program

Pork processing plants can apply to operate faster line speeds
calendar icon 11 November 2021
clock icon 2 minute read

The announcement eased concerns that slower processing speeds had slowed meatpackers' demand for pigs to slaughter, traders said.

Meatpackers were forced to slow processing after a federal judge in March struck down a 2019 rule that removed speed limits on certain plants, Reuters reports.

The USDA's new program "possibly removes a potentially bearish situation with slower chain speeds reducing the demand for hogs and causing some backups and weight gains," said Dan Norcini, an independent livestock trader.

CME December lean hogs ended up 0.750 cent at 75.700 cents per pound. Earlier in the session, the contract dropped to its lowest price since Oct. 28 at 73.700.

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