The director of risk management with Hams Marketing Services says things have really deteriorated for hogs on the forward contract price side.
Tyler Fulton notes we're seeing October and December lean hog futures approaching contract lows.
He explains the U.S. cash hog markets is really what's driving the whole thing.
"As we anticipated, we're seeing huge numbers of hogs coming to market and with the addition of two additional plants, they've got extra capacity to kill them. So we don't think that there's going to be a major problem with matching the hog supplies with the kill capacity but we are a bit concerned about where all of the pork is going to be sold and for what price."
Fulton says the export market needs to take about 10 to 15 per cent more pork than they did last year to avoid significant price concessions.