Pork prices rebound

BusinessWeek reports that pork prices are set to hit record highs this year as a result of high feed costs linked to demand for ethanol. The magazine reported that many swine producers have reduced their herds in response to rising feed costs, resulting in more demand than supply.
Demand is increasing as the economy rebounds and countries lift bans on U.S. pork, which were put in place last year over fears of swine flu. On the Chicago Mercantile Exchange, hog futures nearly doubled between August 2009 and late April 2010, while the wholesale cost of pork increased 25% in April to almost 91 cents per pound.