Forward hog contract prices opened the week sharply higher.

Tyler Fulton is director of risk management with Hams Marketing Services.

"We're seeing the futures market make some gains. We're not quite back to the highs that we saw two to three weeks ago. We're kind of bounced off of the lows that were made last week and still represent very good value...I think the expectation is that we are going to be looking at fairly tight supplies and still rock solid demand going into the summer grilling season."

Fulton says cash prices are also holding firm.

"It's always going to be very specific by producer as to whether or not profitability is going to be there because of the cost of feed ingredients. For the most part, cash prices are profitable, especially for this time of year and we expect that they'll probably still increase another 10 to 15 per cent from current levels over the course of the next two months. "

He notes the prospect looks pretty good and we're not seeing any big concerns or anything on that side of the market.