July hogs managed to push to the highest level since March yesterday and still closed at a significant discount to the cash market. Cash looks to push lower just ahead; especially if demand weakens from the heat but with slow marketings from producers for a few weeks, it may be necessary to bid up cash markets to pull out the hogs in some areas. The CME Lean Hog Index as of June 25th came in at 102.79, up 78 from the previous session and up from 96.88 the week before. This leaves July near a 730 point discount to the cash. Pork cutout values, released after the close yesterday, came in at $99.56, up 10 cents from Tuesday and up from $97.02 the previous week. The estimated hog slaughter came in at 403,000 head yesterday, which was a bit higher than expected and could suggest firm demand from the packer. This brings the total for the week so far to 1.191 million head, up from 1.179 million last week at this time but down from 1.201 million a year ago. Weekly average weights for Iowa-Southern Minnesota as of June 23 came in at 281.4 pounds, up from 272.1 the previous week and up from 268.2 pounds last year. Traders see the heat in the forecast as a reason to expect increased weight loss as well. For the USDA Hogs and Pigs report on Friday, traders see June 1st inventory and market hogs near 1.3% higher than last year. Breeding supply is expected to have increased by about 0.75% from last year. August hogs closed sharply higher on the session yesterday and pushed up to the highest level since March 9th. August traded up the 300 point limit into the mid-session. The stiff discount to the cash market and ideas that producers in the Midwest could dramatically slow marketings in the days just ahead as the 100 degree heat from the central plains moves into the Midwest helped to support. Short-covering was also seen as stops were activated on the move over Tuesday's highs.