Forward hog contract prices are on the rebound following a downturn this summer.
Tyler Fulton is the director of risk management with Hams Marketing Services.
"It's a bit of a counter-seasonal move," he said. "Likely associated to the support that the futures have seen from the news of African swine fever developing in China."
He notes lean hog futures are experiencing extremely high volatility with 8 of the last 10 trading days seeing a price move larger than 5% of its value.
U.S. cash markets have stabilized this week with negotiated prices trading near-steady the last couple of days. However, the cash index continues to move lower, in part, due to a lag from the price declines already seen in the negotiated trade.
Fulton notes while high production levels are almost a certainty for the next several months, export demand remains uncertain and dynamic.
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