(Bloomberg) -- Hog futures are soaring in Chicago as U.S. livestock farmers rein in herds, raising prospects that meat prices will stay high in the months ahead.
The American hog herd was 3.9% lower than a year ago as of Sept. 1, the U.S. Department of Agriculture said Friday in a report. That's the biggest drop for the month since 1999, and analysts had expected a decline of only 1.7%. The number of pigs born during the quarter declined by the most since 1996.
Farmers have been dialing back hog-herd expansion as slaughter plants struggled to run facilities due to a lack of labor. High animal feed supplies have also hit profits in producing pigs.
December hogs jumped as much as 6% Monday.
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