While US hog export sales volumes have struggled to match year-ago levels to China, sales to other countries have been strong enough to offset the deficit and clear the market of the added pork supplies.

That from Tyler Fulton director of risk management with Hams Marketing Services.

"We're really concerned about that US market because that's really where Canada's hog price is determined," he said. "So if the US falters in its export markets, given that they rely on those export markets for about a quarter of their total production. Then Canadian hog producers really take a hit."

Fulton notes that summer month forward contract prices are trading at their highest level since being offered.

However, he says producers should focus their attention on covering their fall and winter price risk in order to protect against the effect of record large pork production.

Forward hog contract prices have seen a little bit of a rally over the last month or so.

Fulton says that the market is a little bit more optimistic that huge price concessions will be avoided during the summer months because of some pretty solid demand.