While next summer prices might be well supported by the surging feedgrain values, August and October hogs could feel the pressure of weak demand and increasing supply pressures ahead. However, the very steep discount to the cash market came into play yesterday and short-covering was likely the primary fuel for the rally. The CME Lean Hog Index as of July 16th came in at 96.69, down 1.36 cents from the previous session and down from 100.42 the week before. August hogs jumped 2.97% yesterday with a huge range of at least 430 points. Reports that Japan will ease import restrictions for US beef helped to cause some recovery off of the early lows and short-covering emerged to drive the market sharply higher. The market traded sharply lower early but the turn down in corn and up in cattle sparked an aggressive short-covering rally to trade 185 higher on the session into the mid-day. Strength in corn overnight might provide significant resistance but both August and especially October remain at a stiff discount to the cash. Cash markets were steady to lower but the bounce in pork cut-out values late Tuesday and again late yesterday and talk of 100 degree weather into the weekend for western Midwest has provided strength. Weekly average weights for Iowa/Minnesota slipped just 1/2 pound for the week to 268.5 pounds as compared with 266.6 pounds last year at this time. The trade expected a deeper drop and will be looking for sharply reduced weights in the weeks just ahead. Slaughter came in a bit higher than expected at 398,000. This brings the total for the week so far to 1.171 million head, down from 1.178 million last week at this time and down from 1.211 million a year ago. Pork cutout values, released after the close yesterday, came in at $90.41, up 38 cents from Tuesday and up from $89.57 the previous week. This is the highest pork market since July 5th.