Additional Pork Plant Downtimes Announced Today

The market was very quiet today with more discussion on plant downtimes than trading reported. An additional three pork plants were reported across Indiana and Illinois today, taking an 43,000 head per day capacity out of the market. Idled plants account for approximately 20 percent of total hog processing capacity, but slower run times and reduced shifts at plants that are still operating are push that number higher. For the week, hog slaughter was off 15 percent compared to last year and it’s reasonable to expect that figure to be larger next week. While the reduced production adds risk for higher prices via limited supply, the high prices in the MBM market have initiated reformulations that are likely to stall the rally, if not reverse it in the near…