There was no expected surge in pork demand at the Chicago Mercantile Exchange, export sales of American pork to China continued to disappoint traders and, as a result, on Thursday, June 20, American lean pig futures fell.

Pork futures have fallen 12% since reaching a five-year high last month on China's forecasts for an increase in pork imports as it tries to curb the spread of African swine fever.

According to traders, US pork export sales to China turned out to be weaker than expected, partly because China has large stocks of pork in cold storage facilities.

“We are seeing a slow growth in supplies - not as much as the market expected - but it is starting to unfold,” said Arlan Suderman, chief commodity economist at INTL FCStone, a US broker.

Sales to China slowed after Beijing last year imposed a 62% retaliatory tariff on US pork imports as part of its trade war with Washington.

However, analysts and traders said that due to the African swine fever, they still expect an increase in demand for pork in China by the end of 2019 and 2020.