Source: Xinhua

04-28-2009 09:27

CHICAGO, April 27 (Xinhua) -- Hog futures on the Chicago Board of Trade (CBOT) hit down limit on Monday due to the escalating swine flu fears and import curbs from China and Russia.

The hog futures delivered in May, June and July all ended at daily down limit, which is 3 cents below the previous closing price. The most active June hog plunged from 71.65 cents per pound to 68.65 cents, or 4.5 percent.

Hogs climbed as high as 1 U.S. dollar per pound last June, but had been under pressure since because of fears of oversupply. Now the swine influenza pressured more on hog because of the decreasing demand concerns.

The World Health Organization said on Monday that 73 cases of swine flu have been confirmed worldwide, 40 of which are in U.S. and 26 in its neighbor Mexico. Hundreds more cases are suspected, especially in Mexico, where as many as 149 deaths are thought to have been caused by the virus, the country's health minister said. More than 2,000 cases have been reported but not confirmed in the country.

It has been confirmed by authorities that this virus has nothing to do with eating pork as the actual virus is a composite of hog, avian and human components.

The Centers for Disease Control in Atlanta said over the weekend there has been no evidence of swine flu in the hog population in the U.S. or that the virus had originated with any swine. The National Pork Board on Monday stressed that "humans cannot contract this strain of swine influenza from eating pork."

However, investors still anticipated that the deteriorating situation is supposed to decrease the demand for pork, especially after the officials in China and Russia announced on Sunday to banpork imports from U.S. and Mexico

The weakness in the hog market spilled over to grains in CBOT. May Corn was down 4.75 cents per bushel to close at 3.7225 dollars per bushel, and soybeans fell 35.5 cents to 10.0475 dollars per bushel.

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Editor:Qin Yongjing