June hogs closed slightly lower for the session yesterday during fairly quiet activity, although the market was thought to have found early pressure from fears of a weakening economy in Europe and fears of sluggish global demand for commodity markets. However, August hogs fell sharply lower during the session and posted a new contract low by the close. With the recent recovery in pork values, there may be a slowdown in producer selling activity during the short-term. Some traders feel that the hog market may need to absorb further demand concerns from the export front with news that the Chinese quarantine bureau has rejected a shipment of 103.50 tonnes of US pork due to traces of a banned drug. Lower rib and loin values helped to pull pork cut-out values lower late Monday, which could push packer margins even deeper into the red. However, pork cutout values released after the close yesterday came in at $78.87. That was up 42 cents from Monday and up from $77.76 from the previous week, and is the highest pork market since April 11th.. The CME Lean Hog Index as of May 4th came in at 81.26, down 66 cents from the previous session and down from 82.53 the week before. This leaves June hogs at a $3.00 premium to the cash market. The estimated hog slaughter came in at 415,000 head yesterday. This brings the total for the week so far to 828,000 head, up from 821,000 head last week at this time and up from 779,000 head a year ago.