ASF Numbers in Germany Grow; U.S. Hog Futures Risejwasilewski
U.S. hog futures rose on Tuesday after more cases of African swine fever (ASF) were discovered in wild boars in Germany. Government officials in Germany warn more cases of ASF in wild boars are to be expected because they move in groups and the virus is easily transmitted.
Europe’s largest pork producer reported its first outbreak of ASF in a wild boar on Sept. 9. The total is up to 32 since the first case was discovered. To date, the cases have been located close to the first one in the east German state of Brandenburg. Nine cases were confirmed in Brandenburg on Sept. 23 and three more cases on Sept. 24, Reuters reports.
“Prices for weaner piglets in Germany have fallen sharply in past weeks following the discovery of ASF in the country,” AgDay’s Clinton Griffiths reports.
Christine McCracken, executive director – animal protein for Rabobank, said in the short run, the announcement gave a little life to the market.
“For the U.S., for example, we might pick up some of that,” McCracken said on AgDay TV. “The challenge though, is that there are lot of other European countries, Denmark or Spain, that process a lot of the same product that Germany does.”
Other European countries may be a better fit than imports from the Americas.
“It doesn’t mean we can’t see a benefit. It’s still a global meat block. You have to think about when somebody loses, somebody else gains. But it’s probably not the huge opportunity that the market initially thought,” McCracken explains.Content within the Farm Journal Forum is the property of Farm Journal, Inc and protected by copyright.