December hogs closed just 5 points higher on session yesterday, which was down 85 points from their mid-session peak. The pork market appears to be stabilizing at higher price levels but there are some in the market who continue to see increasing supply into November as a factor that could spark a weaker trend for the cash market over the next few weeks, and if there will be an active export market for US pork to help absorb some of that excess supply. October hogs currently hold a large premium to the cash market. Many traders see the corn market selloff as a factor which might produce some expansion in the industry, which may have encouraged selling in the late 2012 contracts while supporting the upfront months. As producers hold back gilts, the short-term supply of hogs available for market could tighten further. Cash markets were steady to $1.00 higher, which along with a recovery in pork values late Monday may have added to the positive tone of the market. Weakness in economic sensitive commodity markets and a sell-off in cattle were widely seen as contributing to the late selling. The CME Lean Hog Index as of September 30th came in at 91.30, up 22 cents from the previous session and up from 90.92 the week before. The estimated hog slaughter came in at 421,000 head yesterday. This brings the total for the week so far to 851,000 head, down from 853,000 head last week at this time but up from 839,000 head a year ago. Pork cutout values released after the close yesterday came in at $98.31, down 1 cent from Monday but up from $97.41 the previous week.