Hog disease spreads, China buys more U.S. pork

A killer pig virus that began spreading in China four months ago has picked up pace, causing at least one fresh outbreak on average a day this month and encroaching on major cities including Beijing and Shanghai.

At least 20 provinces covering most of China’s northeastern, eastern and central areas have reported pigs infected with African swine fever, which isn’t known to harm humans but typically causes hogs to die within days.

The world’s top hog producer and pork consumer last week placed its largest order for American pork since the trade war began, U.S. Department of Agriculture data showed on Thursday.

The purchases are a signal that an outbreak of African swine fever is raising concerns of an eventual supply shortfall, potentially superseding trade tensions between the world’s two largest economies, brokers and traders said.

“It’s kind of like, why do you buy from your enemy? Because you have to,” said Don Roose, president of Iowa-based broker U.S. Commodities.

China has imposed retaliatory tariffs on imports of U.S. farm products in the tit-for-tat trade row, including duties of 62 percent on American pork.

U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to meet on Saturday at the G20 summit in Buenos Aires to discuss trade amid increasing tensions.

China in the week ended Nov. 22 bought 3,348 tonnes of pork to be shipped this year, USDA said, its largest purchase for the current season since February.

China also bought 9,384 tonnes of pork for shipment next year, accounting for 72 percent of the total weekly sales to all countries.