June hogs closed slightly lower on the session yesterday but still posted the lowest closing price since early January of 2011. The short-term cash fundamental news remains sloppy and while many traders search for signs of a seasonal low, hefty weights and the sluggish pace of pork movement through the marketing pipeline are seen as key negative forces for the market. Packer margins have been in the red since February and it will take higher pork values or lower cash market prices in order to improve margins. While there is a seasonal tendency for prices to rise during this period, many traders remain concerned with the premium of June futures to the cash market given the recent decline in cash prices. Slaughter came in at 411,000 head, which was lower than expected and suggests sluggish demand for live inventory from the packer. This brings the total for the week so far to 821,000 head, down from 828,000 head last week at this time but up from 802,000 head a year ago. The CME Lean Hog Index as of April 27th came in at 82.53, down 15 cents from the previous session and down from 82.74 the week before. Pork cutout values released after the close yesterday came in at $77.76, down 18 cents from Monday but up from $77.62 the previous week.