The negative impact of the bovine spongiform encephalopathy case in Washington state has carried over to the pork industry, say Glenn Grimes and Ron Plain, University of Missouri agricultural economists.

The nearby five first lean hog futures contracts ended the trading day on Dec. 24 at limit or near limit down.

Finding BSE in the United States will be negative to pork demand, but is not likely to have a very big impact.

Lower beef prices will likely be the major impact because of the cross-demand relationship between beef and pork. The good news for the pork industry is that the cross-demand relationship between beef and pork appears to be quite low, according to the Missouri economists.

The bottomline is that the lower beef prices that are likely from the BSE case will contribute negatively to a pork situation in 2004 that was not very positive to begin with, say Grimes and Plain.