Market News

Grains rally after initial market reaction to "swine" flu

Grains appear to haverallied after the initial market impact of last week’s discovery of what is now being called H1N1 or Influenza A. University of Illinois Ag Economist Darrell Good says since last Monday when the human illness was being called “swine flu”, grains have had quite a rally in prices, after themarket’s initial “knee-jerk” reaction.

Good said, “Corn, soybeans and wheat (are) moving to relatively high levels. Obviously, pork prices continue to suffer.”

He says while the hog markets have suffered grain markets appear tobe moving on.

“It’s clear that the grain markets, for now, have moved on to other factors beyond the flu pandemic that’s been threatened and what that might do to the meat demand and feed demand,” he says.

Pork producers, the USDA, theWorld Organization for Animal Health (OIE) and other ag groups say it was incorrect to call it “swine” flu in the first place because this human flu has nothing to do with U.S. pork which is safe.