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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https://www.reuters.com/article/usa-livestock/livestock-cme-lean-hogs-slip-on-u-s-china-trade-truce-worries-idUSL1N1Y9277