The director of risk management for Hams Marketing Services says US cash markets have strengthened over the past week or so in spite of the fact packers are easily finding hogs to meet a full production schedule.

Tyler Fulton explains where he sees the cash markets heading in the near future.

"I think it's probably going to be tough to see it move much beyond where it has, just really over the last week," he said. "I sense that maybe we're starting to see a little bit of pressure coming back from the wholesale pork trade, keeping in mind we're dealing 3.5% to 4% more pork that what we did last year and the most that we've ever seen in any given week."

Fulton adds that forward prices have seen support recently, coming from the idea that the cash market concerns of really heavy supplies and a complete price collapse are being moderated.

He notes that while cash markets have been supportive, lean hog futures have come under pressure.

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