H1N1 causes US pork supply to swell
Stocks, especially of pork, last year reached an all time high as traders accumulated as much as they could to cater to the growing demand from China. However, the spread of H1N1 caused a setback.
The H1N1 pandemic caused pork supplies in the U.S. to rise to an unprecedented level in June, according to government and analysts quoted in Reuters.
The report cited data from the USDA which showed that total pork stocks at June-end reached 578.8 million pounds. Though down 1% from May-end figures, the stocks were 9% higher compared to last year.
The report further quoted livestock analyst Rich Nelson of the brokerage firm Allendale Inc. as saying that compared with a usual draw down of 40 million pounds a month, last month saw a drawdown of 6 million pounds. This indicated that exports have been hit by H1N1. CME lean hog futures, the report said, have fallen by almost 30% after reaching a high of 90 cents a pound in August last year.