November 21, 2007

Smithfield Foods confirms no new China pork deals made
 

Smithfield Foods (SFD) has no new pork deal with China, according to company spokesman Jerry Hostetter.

Hostetter told Dow Jones Newswires that the company is still shipping product from a previous deal made earlier in the fall but added that it is nearing the completion of the shipments for that sale.

Speculation of a new pork deal between Smithfield Foods and China swept through the Chicago Mercantile Exchange's lean hog pit early Tuesday and sent the December through April contracts sharply higher. December touched the 300-point daily limit in the early surge.

Also contributing to the surge in futures prices were reports that the company's John Morrell plant in Sioux City, Iowa, plans to operate on Sunday. Dow Jones Newswires reported early Tuesday that a plant in the western corn belt was planning to schedule operations on Sunday.

At 11:50 a.m. EST (1650 GMT) December lean hogs are trading 215 points higher at 54.15 cents per pound and February is up 180 points at 62.00 cents.