Winter storm threatens to affect operations at US meat plants

Hog processing schedules mainly in the western US Corn Belt are likely to encounter minor interruptions on Thursday (Jan 7) and possibly into early Friday (Jan 8) due to the latest round of wintry weather.

Disrupted slaughters and pork output may be supportive for wholesale pork prices in the near term but could be bearish for hog prices next week, analysts said.

The National Weather Service has issued a winter storm warning for the region. Blizzard-like conditions, drifting and poor visibility are expected and could severely impede transportation of hogs, said livestock dealers.

According to dealers and market managers, pork packers have been preparing for the storm's arrival by pulling ahead on their scheduled deliveries.

Early projections for Saturday's slaughter are mostly around 75,000 to 80,000 heads, excluding any interruptions to operations during the week.

Some analysts and dealers predict that if slaughter schedules are affected, additional plants may work on Saturday to make up the hiatus.

On the other hand, due to uncertainty over the weather and road conditions, some packers might choose to carry the leftover hogs until next week rather than operate on Saturday, analysts said.