There has been a good upturn in lean hog futures and consequently in fixed forward contracts that are offered for western Canada.

Tyler Fulton is the director of risk management for Hams Marketing Services.

"Generally speaking the market has taken in some more optimistic market fundamentals, market data, and has worked that in to higher prices for generally the spring and summer months," he explained. "The Canadian dollar has bumped up a little bit over the course of the last couple of weeks, but not enough really to undue the gains that we've seen in the lean hog futures."

Fulton adds that the market has been easily able to clear the excess inventory, which has amounted to about three to four per cent more pork over year ago levels, and it's happening at higher prices.

He notes producers should consider covering up to half of their spring production price risk, as supplies are projected to stay heavy while there are headwinds in the export markets.

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