CHICAGO, Nov 10 (Reuters) - Chicago Mercantile Exchange lean
hog futures rose on Wednesday after the U.S. Department of
Agriculture (USDA) said it will allow nine pork processing
plants to apply to operate faster line speeds under a pilot
The announcement eased concerns that slower processing
speeds had slowed meatpackers' demand for pigs to slaughter,
Meatpackers were forced to slow processing after a federal
judge in March struck down a 2019 rule that removed speed limits
on certain plants.
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.
In CME's beef markets, December live cattle futures
ended 0.200 cent lower at 132.000 cents per pound, after rising
on Monday to their highest since Sept. 3 at 132.500 cents.
The most actively traded January feeder cattle contract
fell 1.750 cents to settle at 158.050 cents per pound.
The contract on Monday and Tuesday traded up to 160.600, which
was the highest price since Oct. 27.
In other news, Brazil's JBS SA posted
third-quarter net income that exceeded analysts' expectations on
the strength of its U.S. meat business and higher domestic food
sales, according to a financial statement on Wednesday.
U.S. meat processor Tyson Foods Inc is set to report
quarterly earnings on Monday.
(Reporting by Tom Polansek and Julie Ingwersen in Chicago;
Editing by Sherry Jacob-Phillips)