Exports were the main reason for the hog market rally. Second-quarter U.S. pork exports doubled year-ago levels. During May and June, the United States exported about 25 percent of all the pork produced. China/Hong Kong, Russia and Japan were the three biggest growth markets. 

Pork production in the first half of 2008 was up 10.4 percent from 2007, but because of increased exports and decreased imports, the supply on the U.S. market equaled that of January to June 2007. Factor in U.S. population growth and the per-capita supply was down nearly 1 percent.