October 30, 2009
US hog futures higher on news China may buy pork
News that China may soon resume buying US pork helped push US hog futures higher in electronic trade early Thursday (Oct 29), but analysts warned that pork sales to that country will be small once the ban is lifted.
Rich Nelson, analyst with Allendale Inc., said China has been building up its own hog and pork supplies and will not need to import as much as in years past.
Following meetings in China this week, USDA Secretary Tom Vilsack and US Trade Representative Ron Kirk said that China should soon lift its ban on US pork, which was applied in May after outbreaks of AH1N1 flu.
Brock Associates said China is not likely to be a major buyer of US pork again soon, with its domestic production having rebounded.
In early electronic trading, Chicago Mercantile Exchange December hog futures <LHZ9> were up 0.425 cents, or 0.76 percent, at 56.375 cents per pound with February <LHG0> up 0.250 cent, or 0.4 percent, at 62.475 cents.
