Forward hog contract prices were performing fairly well heading into the New Year.

That from Tyler Fulton, Director of Risk Management with Hams Marketing Services.

"They easily broke into $200 per pig and actually summer months were trading up as close to $250 per pig, but just in the last three or four days, we've seen some pressure coming on really all of the forward contract prices by virtue of the futures dropping. They've come off of their highs for sure."

Fulton says the longer term view is that hog prices are going to stay up fairly strong, mainly because of tight supply.

He notes the pandemic continues to impact U.S. cash prices.

"We're seeing again, another round of influence from COVID. We're seeing several plants that are really struggling to keep their labour force going at full capacity. There's really unprecedented sick leave that's happening. Exceeding levels seen previously in the pandemic. That's actually a force that's being seen on the cash market side."