Forward hog contract prices have come under a bit of pressure, but still represent really good value for the first half of 2022.

Tyler Fulton is Director of Risk Management with Hams Marketing Services.

"We're looking at average hog values that are just shy of $200 a pig, on average, from the first of January to the end of July," he said. "It's really kind of an unprecedented opportunity to be able to secure a price at that level, at this time of year."

Fulton notes cash prices are coming under pressure as they typically do for this time of year.

"Moving through the U.S. Thanksgiving holiday is typically when we associate the seasonal low to come in. Just related to the fact that that's when the highest production levels come in. That's a bit of a concern. The way it breaks down is, for the hogs in the United States that aren't on a committed and contracted program, they're taking the biggest hit in price, but for those that aren't, they're still making some reference to the value of pork that the packers sell and therefore they've been cushioned from some of those deep cuts."

He says with feed prices the way that they are, producers are definitely not in profitable territory at current cash prices, which is not atypical for this time of year.