By Joanna Levin

PIG prices rallied strongly across the USA during the past week. But many Chicago brokers remain bearish, saying that an oversupply of pigs is likely to reduce returns in the medium term.

Lean pig contracts for June were back up at March levels at 61.175¢/lb (36.72p/lb) yesterday (Monday, 13 April) compared with 50.2¢ on Friday, 3 April.

Analysts believe packers are enjoying better margins between the price for live pigs and carcass values. Prices for near months are being further supported by stronger demand.

Rumours of possible orders from South Korea and Taiwan – two major export destinations for US producers – also boosted returns. But analysts say that high stock levels in cold storage are likely to drive prices lower over the coming months.

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