US lean hogs hit new low - CME

Apr 24, 2023

Chicago Mercantile Exchange (CME) April and May feeder cattle futures hit fresh contract highs on Tuesday on tight supplies, as analysts said they expected cattle placements to continue to trend down, Reuters reported, citing traders.

Meanwhile, CME May lean hogs hit a contract low of 78.500 cents per pound, before closing down 2.175 cents at 78.825 cents per pound.

Hog futures slipped on weak technicals, traders said, as the cash market continues to remain weak and premiums in the futures markets stay hefty.

"We're seeing that cash market moving lower and lower," said Don Roose, president of Iowa-based US Commodities. "When you add the weakness on the export market, hogs are in a tough spot."

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Video: What Does 20 MILLION Hogs a Year Look Like?

?? The Multi-Plant System Processing 20 Million Hogs Annually in the Midwest JBS USA operates multiple large-scale pork processing facilities across the Midwest, including major plants in Iowa, Minnesota, and Indiana. Combined, these facilities have the capacity to process approximately 20 million hogs annually.

Each plant operates high-speed automated slaughter systems capable of processing up to 20,000 head per day, followed by fabrication lines that break carcasses into primals, sub-primals, and case-ready retail products.

Hog procurement is coordinated through electronic marketing platforms that connect regional contract finishing operations and independent producers to plant demand schedules. This digital procurement system allows for steady supply flow and scheduling efficiency across multiple facilities.

Processing plants incorporate comprehensive food safety systems, including pathogen intervention technologies, rapid chilling processes, and integrated cold-chain management. USDA inspection is embedded throughout the harvest and fabrication stages to ensure regulatory compliance and product integrity. Finished pork products — from bulk primals to retail-ready packaged cuts — are distributed through coordinated logistics networks serving domestic and export markets.