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CHICAGO, May 1 (Reuters) - U.S. hog prices closed higher on Friday, after steep losses earlier in the week, as investors appeared to believe the worst of the flu-related trade disruptions may be over and that some trade bans on U.S. meat and pork could soon be lifted.
Despite Friday's gains at the Chicago Mercantile Exchange, hogs finished lower for the week, with the lightly traded May contract down 15 percent from a week ago and the more active June hogs down 8.5 percent.
Selling early in the week was prompted by several countries banning imports of U.S. pork or meat from several U.S. states that had human cases of the flu. Originally called swine flu, the bans were apparently applied to curb its spread.
The flu, now called Influenza A or H1N1 by the World Health Organization, is spread by humans, not by hogs or pork.
"We are moving in the right direction as the WHO and people have stopped referring to it as swine flu," said Ron Plain, an agricultural economist at the University of Missouri.
The National Pork Producers Council predicted the bans on U.S. pork could be lifted soon. Mexico on Thursday asked the WHO to investigate the trade bans and urge that such bans should not be taken.
China and Russia should end restrictions placed on U.S. pork imports after an outbreak of a new flu virus, U.S. Commerce Secretary Gary Locke said.
"Government actions during this time of economic uncertainty and international concern about influenza must be based on scientific evidence," Locke said in letters to the Russian Federation's deputy chairman and China's commerce minister.
"There should be no restrictions on trade without cause," Locke wrote.
During an appearance on CNBC, C. Larry Pope, chief executive at Smithfield Foods Inc, the largest U.S. hog and pork producer, said the bans or trade barriers were "not justified."
"I do believe the world is beginning to understand and I believe Americans are beginning to understand. This is not an animal to human disease," he said.
The bans have cut U.S. pork exports 8 to 12 percent, the U.S. Meat Export Federation said this week. Pork sales to Mexico have slowed as that country has restricted economic activity to slow the flu's spread.
U.S. hog futures prices at the CME closed higher, with May hogs up 0.375 cent, or 0.65 percent, to 58.475 cents per lb. and the actively traded June hogs up 1.050 cents, or 1.63 percent, to 65.575 cents.
"I don't know if people are less worried about it," one CME trader said the flu. "We have beaten it (the hog market) to death for four days and we are just taking a pause."
In pork bellies, which are used to make bacon, the May contract closed up 2.875 cents at 77.800 cents per lb and the July contract ended up the 3-cent daily limit to 78.125 cents per lb.
Shares of Smithfield Foods were higher at times on Friday but closed down 3 cents at $8.61 at the New York Stock Exchange. For the week, the shares are down more than 16 percent. (Editing by Marguerita Choy)
http://www.forexpros.com/news/general-news/update-2-us-hogs-trade-higher-as-flu-fears-ease-50679
Despite Friday's gains at the Chicago Mercantile Exchange, hogs finished lower for the week, with the lightly traded May contract down 15 percent from a week ago and the more active June hogs down 8.5 percent.
Selling early in the week was prompted by several countries banning imports of U.S. pork or meat from several U.S. states that had human cases of the flu. Originally called swine flu, the bans were apparently applied to curb its spread.
The flu, now called Influenza A or H1N1 by the World Health Organization, is spread by humans, not by hogs or pork.
"We are moving in the right direction as the WHO and people have stopped referring to it as swine flu," said Ron Plain, an agricultural economist at the University of Missouri.
The National Pork Producers Council predicted the bans on U.S. pork could be lifted soon. Mexico on Thursday asked the WHO to investigate the trade bans and urge that such bans should not be taken.
China and Russia should end restrictions placed on U.S. pork imports after an outbreak of a new flu virus, U.S. Commerce Secretary Gary Locke said.
"Government actions during this time of economic uncertainty and international concern about influenza must be based on scientific evidence," Locke said in letters to the Russian Federation's deputy chairman and China's commerce minister.
"There should be no restrictions on trade without cause," Locke wrote.
During an appearance on CNBC, C. Larry Pope, chief executive at Smithfield Foods Inc, the largest U.S. hog and pork producer, said the bans or trade barriers were "not justified."
"I do believe the world is beginning to understand and I believe Americans are beginning to understand. This is not an animal to human disease," he said.
The bans have cut U.S. pork exports 8 to 12 percent, the U.S. Meat Export Federation said this week. Pork sales to Mexico have slowed as that country has restricted economic activity to slow the flu's spread.
U.S. hog futures prices at the CME closed higher, with May hogs up 0.375 cent, or 0.65 percent, to 58.475 cents per lb. and the actively traded June hogs up 1.050 cents, or 1.63 percent, to 65.575 cents.
"I don't know if people are less worried about it," one CME trader said the flu. "We have beaten it (the hog market) to death for four days and we are just taking a pause."
In pork bellies, which are used to make bacon, the May contract closed up 2.875 cents at 77.800 cents per lb and the July contract ended up the 3-cent daily limit to 78.125 cents per lb.
Shares of Smithfield Foods were higher at times on Friday but closed down 3 cents at $8.61 at the New York Stock Exchange. For the week, the shares are down more than 16 percent. (Editing by Marguerita Choy)
http://www.forexpros.com/news/general-news/update-2-us-hogs-trade-higher-as-flu-fears-ease-50679