Forward hog contract prices continue to rise.
Tyler Fulton is director of risk management with Hams Marketing Services.
"We're seeing a return to some of the highest prices that we've seen in the last five years," he said. "We've got some exceptional forward prices coming in. It would work out to something better than $250 per pig in some of the summer weeks and that's coming really as a direct function of lean hog futures moving sharply higher. Really what's happening here is an overall short supply situation and really good solid demand."
He notes U.S. cash prices are also on the rise.
"Cash prices are moving kind of in concert with the forwards as well, it's probably more the other way around. The cash market tends to lead. What we're actually seeing there is really strong movement in the pork cutout. Really good demand from U.S. packers to make sure all the available space is utilized because they've got really decent margins that they're dealing with right now as well."
Fulton notes African swine fever in China continues to be a struggle.
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