March 18, 2011

Japan's US pork purchase eases US meat market concerns

Japan has been buying US pork this week, which has eased concerns in the US meat sector that such business would be disrupted by the devastating calamities in Japan, US industry sources said Thursday (Mar 17).

"I characterise it as more normal. That is the message. It is encouraging to see business getting back to normal," one industry source said of Japan's purchases.

Orders for US pork have been coming in during the past few days, with Japanese buyers looking for a "menu of items," the industry source said.

While the orders are for prompt shipment, the sources said it did not appear the meat was needed immediately.

"Our feeling today is there isn't a shortage in that we need to be airlifting meat to Japan. My sense is that we are not in that kind of a mode yet," the source said.

Japan is a leading buyer of US pork and beef and there had been concerns in the US as to how that business would be affected by the damage. Those concerns sent Chicago cattle and hog futures sharply lower the past few days

On Thursday, US cattle and hog futures rebounded. Some gains in hogs were on ideas Japan will need to increase meat purchases to rebuild stocks damaged by the earthquake, tsunami, and radiation from the damaged nuclear plants.

In morning trading, April hog futures were up US$0.029, or 3.4%, at US$0.882 cents per lb.