October hog futures closed slightly higher on the session yesterday while December hog futures finished unchanged on the session ahead of the USDA Hogs and Pigs report. Weakness in other agricultural markets and a negative tilt to outside markets were thought to have offset strong gains in cattle to hold futures prices within the recent consolidation range. Cash hogs were steady and most markets were quiet ahead of the USDA report. All Hogs and Pigs as of September 1st came in at 101% of last year, which was higher than many traders expected and near the high end of estimates. Kept for Breeding supply was also higher than expected at 100.6% of last year, which was up 0.5% above expectations and suggests for some traders that there will be some light expansion in the industry. Kept for Market supply was also up 0.5% from expectations to 101% of last year. Other traders feel that breeding issues in July due to excessive heat might show up as a drop in pigs per liter for the September-November pig crop, which in turn will not show up until the December report and may be reflected with smaller than expected slaughter in the March-May timeframe. Weekly average weights for Iowa/Minnesota for the week ending September 24th rose to 270.0 pounds as compared with 268.4 pounds the previous week and 269.8 pounds last year. The steep drop in other agricultural markets as well as a selloff in energy and metal markets may have softened demand levels. The CME Lean Hog Index as of September 26th came in at 91.20, up 28 cents from the previous session and up from 89.07 the week before. This leaves October at a 240 point discount to the cash market. The estimated hog slaughter came in at 427,000 head yesterday. This brings the total for the week so far to 1.280 million head, up from 1.274 million head last week at this time and up from 1.245 million head a year ago. Pork cutout values released after the close yesterday came in at $97.78, up 37 cents from Tuesday and up from $96.05 the previous week.