LIVESTOCK-CME lean hogs slip on U.S.-China trade truce worries
By Karl Plume / Reuters
December 4, 2018 / 4:39 PM
CHICAGO, Dec 4 (Reuters) - U.S. lean hog futures fell for a
second consecutive session on Tuesday on concern over a trade
truce agreement reached over the weekend between the United
States and China, the world's top hog and pork market.
Global stock markets tumbled on Tuesday as optimism waned
that the United States and China could quickly resolve their
trade dispute.
At a meeting between the world's top two economies on
Saturday, the White House agreed to delay new tariffs during a
90-day truce period, while Beijing pledged to purchase more
agricultural products from U.S. farmers immediately. U.S. pork
and soybeans were expected to represent the bulk of that buying.
"The hogs and the S&P are going down, taking risk premium
out of the market because of disappointment in the overall U.S.
China trade deal," said Mike Zuzolo, president of Global
Commodity Analytics.
U.S. President Donald Trump said he was open to extending
the 90-day trade truce window but also warned he would revert to
tariffs if the two sides could not resolve their differences.
China is expected to need large pork imports as vast numbers
of its domestic hogs have been culled due to the spread of
African swine fever to farms across the country. But steep
import duties imposed on U.S. pork during the tit-for-tat trade
fight remain in place.
Chicago Mercantile Exchange...
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