CHICAGO, Ill. (Reuters) — Hog futures at the Chicago Mercantile Exchange surged 6.5 percent last week on tightening U.S. supplies as a deadly pig virus sweeps the country.
Lean hog futures finished the week about a penny off of a record high of $1.1468 per pound set earlier in the week.
Porcine epidemic diarrhea virus (PED) kills piglets, which in turn reduces the supply of market-ready hogs a few months later.
Hog and pork wholesale prices are already at their highest ever level for this time of year.
There was widespread market talk that big packers, including the world’s top pork processor, Smith-field Foods Inc., may reduce production to four days from five.
“It’s happening throughout the industry. It’s not just Smithfield. All pork processors are having this issue with the disease,” said one industry source close to the situation.
There is no official data on how many hogs have died from PED, but analysts and economists put losses at least at four million head since the virus was detected last May.
