Hog producer margins were previously signaling contraction but are now easing as producers cycle out of higher priced rations, with farrow-to-finish operators experiencing their fifth consecutive month of positive margins in August. Sow slaughter has declined, but the breeding herd was down 3% YoY at an eight-year-low. Pigs saved per litter has risen, offsetting the declining breeding herd. Lean hog futures are declining seasonally, and margins are expected to narrow by the end of the year. Global pork demand remains robust, and US pork is gaining a competitive advantage in global markets, likely overtaking Europe as the leader in pork exports this year.