Cash hog prices have dropped more than 15 percent in the last month, in contrast to the last two years, where prices held steady at this time.
"It's a real anomaly," says Tyler Fulton, director of risk management with H@ms Marketing Service.
He explains it's normal to see a slight erosion in prices at this time of year with the increased supply coming out of summer.
"Packers are typically pretty quick to increase their kill schedules to make up for the new supply coming in," he says.
With weekly hog slaughter numbers nearly identical from 2010 to 2011, Fulton says the reduced prices must be due to a change in demand.
"It's probably a function of both the domestic and the export markets. On the domestic side, I think it's more fear, the increased talk of a recession," he explains. "On the export side, we do tend to see a little bit of seasonality. Maybe we're just not seeing the same influence from China and South Korea that we were two months ago."