The best news continues to be record pork exports.  During the first seven months of 2008, U.S. pork exports exceeded year-earlier levels by more than 1.2 billion pounds, with 46 percent of the increase going to China or Hong Kong.  U.S. Pork production during those seven months was up 10.6 percent, but because of increased exports and decreased imports, the domestic pork supply was equal to the January-to-July period last year.

China is rebuilding its swine herd after herd health problems such as blue-ear disease. What China does in coming months about pork imports will have a big impact on how low U.S. hog prices drop this fall.