Profit margins for hog producers are expected to dip into negative territory for the remainder of 2006.


That's the prediction of Manitoba Pork Marketing Co-op Director of Risk Management Tyler Fulton.


He says the usual seasonal drop off coupled with a near 90 cent loonie could lead to losses of more than $5 per animal.


Fulton notes there is a variable though, that being the recent variability of weekly hog supplies.


He adds that could lead to a risk premium being built into the market which may push cash prices to higher levels than what is currently offered on forward contract.


Fulton stresses forward contract prices for september represent good value compared to historic values.


He suggests protecting 30 percent of production.