US Hog futures Pushed by Chinese Favour
US - US pig prices increased to the highest level in four months prompted by speculation that China will latch onto American pork imports as a means of curbing inflation and rising food costs.
30 January 2008
2 minute read
According to the Independent, COFCO Ltd, China's largest oils and food trader, is talking with Tyson Foods about buying US pork, Tyson ceo Richard Bond said yesterday. Hog prices fell 6.2pc last year, partly because China bought less pork in August than analysts forecast.
"If China wants to cut down on food-price inflation, it makes sense to bring imports in," said Mike Zuzolo, chief analyst at Risk Management Commodities in Lafayette, Indiana. "It will help them in the short term."
Hog futures for April delivery rose 2.1c to 65.6c a pound on the Chicago Mercantile Exchange. The price earlier rose to 65.75c a pound, the highest since September 20. Futures are still down 4.8pc in the past year, in part because of China's diminished purchases.
Chinese importers bought 27,200 metric tons of pork on August 27, less than analysts' estimates of about 50,000 tons. Hog futures fell 4.2pc that day, the most in 11 months. Before today, the price had dropped another 6.2pc since then.
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