Two new pork processing facilities came online on Tuesday, which should help stabilize cash hog prices amidst near record supplies. The Triumph Seaboard Foods Plant in Sioux City and Clemens Food Group Plant in Coldwater, Michigan both began limited slaughter operations. Dr. Steve Meyer, Vice President of Pork Analysis with EMI Analytics, says initially this should have a positive market impact.

However, Meyer doesn’t expect a big rally in hog prices because both plants will draw on contracted production, rather than competing aggressively in the spot market.

He says when the plants are fully operational they’ll process about 22,000 head per day, which does represent the largest single increase in slaughter capacity in history.

Meyer says the expansion by U.S. pork processors is a direct result of strong packer margins the last few years.