The director of risk management with Hams Marketing says forward hog prices have really come down, pretty much trading at the lowest level that we've seen so far this year.

Tyler Fulton says prices reflect the market fundamentals today that anticipate record large pork production, really heavy supplies of live animals coming to market over the next two or three months, and generally sluggish demand-related factors.

"Exports, while they've been improving to China, they generally haven't held up real well to Japan and Mexico and so it's been a struggle to maintain any kind of steady trend, forget about improving things," said Fulton.

Fulton is anticipating that the USDA will release its third quarter hogs and pigs report this Friday, September 30, which he says could be a real market mover for lean hog futures.

He notes it could significantly impact hog prices and hog futures over the next two to four months.