US hog prices rise after China lifts ban

After China lifted its pork ban on pork from the US, Canada and Mexico, US hog prices were higher early on Tuesday (Dec 1), but analysts warned that China's action should not result in new pork sales.

In early trading at the Chicago Mercantile Exchange, US December hog futures were up 0.400 cent at 59.000 cents per lb and February futures were up 0.350 at 67.225 cents per lb.

The gains in futures also were attributed to buying by chart-following funds and recent gains in cash hog and pork markets.

Analysts said that China has built up its own hog herd and currently has an excess of pork, both of which will likely prevent significant purchases from the US or other countries.

China was a leading buyer of US pork in 2008, partly due to higher supplies for the Olympics the country hosted then. While new pork sales to China are not imminent, the news is still psychologically bullish for the US hog and pork markets.

China banned pork from the three countries this year due to outbreaks of AH1N1 flu. The US meat industry has criticised such bans as the flu is not transmitted by hogs or pork.