MILWAUKEE — Prices for U.S. hogs and shares of the nation’s largest hog and pork producer all soared Tuesday as concern about the international swine flu outbreak seemed to abate, relieving investors’ fears that pork consumption would slump.
The trade group representing the nation’s pork producers nonetheless asked the federal government to buy up $50 million in pork products to help bolster pricing, saying the industry is incurring accelerating losses as a result of the outbreak and dwindling exports.
The rise in prices for pork futures and shares of Smithfield Foods erased drops last week when investors worried about pork consumption plunging.
U.S. health officials have said the H1N1 virus, which causes swine flu, cannot be contracted by eating properly cooked pork. The virus is transmitted among people, not from pigs or pork to humans, officials have said.
But the industry has noted consumption drops and closed export markets as countries and consumers grew leery of pork.
There were signs Tuesday that the virus’ impact would not be as big as feared. U.S. health officials said they were no longer recommending that schools close in the event of suspected swine flu cases because the virus has turned out to be milder than feared.
Producers see rise
Tyson Foods Inc., the world’s largest producer of meats, including pork, said Monday that it expected a drop in demand for pork to be short-lived amid worries about swine flu.
Shares of Smithfield, Va.-based Smithfield Foods rose $2.38, or 24 percent, to close at $12.25 on Tuesday, on extremely heavy volume.
They had ended the first full week of the swine flu scare at $8.61 on Friday.
by the associated press
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