Indications about reduced worldwide demand tugged down hog futures on Thursday as the livestock was heading toward its lengthiest bearish run in about 16 months, according to Bloomberg.
The U.S. Meat Export Federation said that China, which is the globe's third largest buyer of pork products generated in the U.S., demanded paperwork demonstrating exports were not treated with an additive that augments lean muscle. Russia, the sixth-largest buyer of U.S. products, also is fearful of the additive's presence and prohibited imports.
"The demand challenge is there in the export market right now," market adviser Lawrence Kane with Stewart-Peterson Group in West Central Illinois told the news source on Thursday. "We ship an awful lot of pork. Internationally right now, we have a question on demand."
At 11:50 a.m. on Thursday, lean hog futures fell 0.9 percent, a 0.0075 cent loss to 0.822 per pound.
The Wall Street Journal reports pork supplier Smithfield Foods said it is set to accommodate the increased preference for exports of pork products that do not contain the additive, which is in response to preferences of China and Russia.
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