China Cancels Most U.S. Pork Ever After Coronavirus Port Woes

(Bloomberg) -- Chinese buyers canceled a record amount of U.S. pork last week after imports were piling up at the Asian giant’s ports amid the coronavirus outbreak.

China cut purchases of 45,200 metric tons of pork, according to weekly data from the U.S. Department of Agriculture. That’s the most ever in data that began in 2010. The cancellations were partially offset by sales to Canada, Mexico and Japan, resulting in an overall net reduction of 26,600 tons.

The loss cast further doubt on a demand bounce for American meat in China, even as the country began granting tariff waivers on U.S. goods as part of the trade deal signed in Washington in January.

“It’s not a good number, especially as some were expecting big new orders now that China is granting tariff relief for some commodities, including pork,” said Altin Kalo, analyst at Steiner Consulting Group in Manchester, New Hampshire.

It’s been a roller-coaster of major developments for hog markets. Shortly after the trade dispute between the U.S. and China worsened in 2018, there was an outbreak of African swine fever in northern China, a deadly animal disease that ultimately cut the herd roughly in half in the world’s largest pork producer and consumer.

The hog disease created unprecedented demand for meat imports in China. But sales of American supplies were impeded by the trade war. The dispute was partially resolved following the phase-one agreement that went into effect Feb. 15. By then, though, coronavirus was spreading and activity at ports ground to a near-halt.

Still, there were hopes of a pickup in U.S. pork sales to China. Activity was resuming as the spread of the virus slowed. While China canceled some pork orders, USDA data also showed 16,100 tons in new shipments to the country. Meanwhile, Chinese buyers ordered supplies of U.S. sorghum and cotton, and canceled 90,000 tons of soybeans.

“China still has nowhere near enough pork to feed its people,” said Steve Meyer, economist at animal agriculture consulting firm Kerns & Associates in Ames, Iowa. “They can replace the orders as quickly as they canceled them.”

--With assistance from Megan Durisin.

To contact the reporter on this story: Michael Hirtzer in Chicago at mhirtzer@bloomberg.net

To contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net, Reg Gale, Patrick McKiernan

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