The Hogs and Pigs report was released after the market closed on Wednesday. The report showed only modest expansion in hog numbers despite fairly good profits over the last 20 months. Prices have weakened this quarter and there have been times when they dipped below break-even levels for at least some producers with relatively high costs. The breeding hog inventory came in at 6.01 million head, up 0.7% from a year earlier, and in line with expectations. The market hog inventory was only 0.3% higher than in 2004, lower than expected. Producers say they will farrow 1% more hogs this quarter, compared to last year, but the March-May farrowings are virtually unchanged from last year and less than expected. Overall the report is modestly bullish for prices. Look for futures to open higher on Thursday morning.