USDA released the quarterly Hogs and Pigs report after the market closed on Wednesday. The report showed modest expansion, as was expected. As of December 1, the number of market hogs was up 1% from a year earlier, and the number of breeding hogs was 1.3% higher. The market hog inventory was in line with pre-report expectations and will probably have little impact on the market. The breeding hog inventory was a little higher than expected. Current quarter farrowing intentions were up 2% above last year, and that could be bearish, if producers follow through on those intentions. We didn't see a 2% year over year increase in farrowing at any time in 2006.