October hogs closed 47 higher on the session yesterday, but down 60 from the early peak. Other hog contracts were weak, with December now trading at a slight discount to the cash market. The market traded moderately higher early in the session, rising to the highest price levels since August 25th, but futures gave back some of those gains into the midsession. Ideas that cash hogs will have difficulty showing much strength with rising supply ahead was thought to have limited the advance. Cash hogs were mostly steady yesterday, with some locations reporting a slightly higher trade. Pork product prices are slightly higher this week, but a weak tone for loins into the mid-day may have helped to take prices off of their early peak. Some traders see a period of stability in the cash market just ahead but then another increase in production into October along with another period of weaker product trade. The CME Lean Hog Index as of September 9th came in at 86.43, down 65 cents from the previous session and down from 92.60 the week before. This leaves October hogs at a slight premium to the cash, which is not normal for this time of the year. The estimated hog slaughter came in at 424,000 head yesterday. This brings the total for the week so far to 849,000 head, up from 424,000 head last week at this time and up from 827,000 head a year ago. Pork cutout values released after the close yesterday came in at $94.84, up 56 cents from Monday and up from $93.83 the previous week. While the US corn market is setting back from the recent highs, Chinese corn prices hit another new record high this week ahead of their harvest. Officials are insinuating a record production year in China for the upcoming harvest but also suggest that demand may outpace supply which in turn will lead to higher imports. China pork prices hit record highs for the 5th week in a row and are widely seen as a key driver for Chinese inflation, which has implications for China import activity for corn and/or pork.