Tyson Foods ( NYSE: TSN ) fell in early trading on Monday after China suspended some meat imports from the meat giant.
China's customs office indicated that the halt starts today for products from a plant owned by the Tyson Fresh Meats subsidiary that failed a pig trotter inspection.
Beijing has also halted on shipments of meat products from two other U.S. plants in the past month or so due to the presence of the banned ractopamine feed additive.
Chinese buyers can still buy from other Tyson plants in the region, but are also reported to be considering making more pork purchases from overseas markets. The Chinese government also announced that it will start releasing pork from state reserves to bolster supplies.
"China's pork demand is expected to improve in the coming months and prices are being pressured to climb further," noted Rabobank on the industry backdrop.
Shares of Tyson Foods ( TSN ) fell 0.54% premarket to $77.89.
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Tyson Foods is on watch after China cuts some meat imports