CHICAGO, June 1 (Reuters) – Chicago Mercantile Exchange (CME) lean hog futures fell Monday on worries that deteriorating relations between the United States and China, the world’s biggest pork importer, could inhibit U.S. pork sales to the Asian nation, traders said.
China told state-owned firms to halt purchases of soybeans and pork from the United States, two people familiar with the matter said, after Washington said it would eliminate special treatment for Hong Kong following China’s move to tighten security measures in the territory.
Such a halt would put China further behind in making good on its pledges under the “Phase 1” U.S.-China trade pact signed in January.
“China has already been backing off from pork purchases over the past three weeks,” said Rich Nelson, chief strategist for Allendale Inc.
Weekly U.S. pork sales to China averaged more than 23,000 tonnes from early March through April, but net sales through the first three weeks of May were a net negative 417 tonnes, according to U.S. Department of Agriculture data.Read full article Share on twitter