April hogs saw the highest close since February 1st yesterday and the second highest close since December 7th. The hog market has now rallied as much as 267 points off of Monday's lows as a jump in pork cut-out values late Wednesday led to much better margins for packers. A surge in ham and loin prices late Wednesday helped to support the market as higher pork values are expected to boost packer margins and provide an incentive for packers to bid up cash markets into next week. However, pork cutout values released after the close yesterday came in at $86.32, down $1.89 from Wednesday but up from $84.82 the previous week. Product markets were down across the board, and this leaves some traders hesitant to believe that the cash market can rally without a minor seasonal upturn in production going into March. Cash came in mostly steady yesterday. with some terminals $1.00 higher. The CME Lean Hog Index as of February 14th came in at 87.19, down 17 cents from the previous session and down from 87.66 the week before. The estimated hog slaughter came in at 421,000 head yesterday. This brings the total for the week so far to 1.684 million head, up from 1.681 million last head week at this time and up from 1.609 million head a year ago. Actual US pork production for the week ending February 4th came in at 443.3 million pounds, down from 447.7 million pounds the previous week and down 2.3% from a year ago.