The U-S Department of Agriculture released its quarterly hogs and pigs report on Wednesday afternoon.  The report shows a decrease of one percent of the total hog inventory compared to the same time a year ago.  The number of hogs as of June 1^st was listed at 72.5 million head.  Breeding inventory, at 6.17 million head, was down 1 percent from last year, but up 1 percent from the previous quarter.  Market hog inventory, at 66.4 million head, was down 1 percent from last year, and down slightly from last quarter.  Iowa leads all states in hog production with more than 22 million, 600 thousand head.  Minnesota is second with 7 million, 880 thousand head, and North Carolina ranks third with 7 million, 330 thousand head of hogs.  Other states include Illinois with 4.6 million, Indiana with 4.1 million head, Nebraska with just over 3 million head, Missouri has 2.7 million, while Ohio has 2.4 million, and South Dakota has 1.8 million head of hogs.  Kansas rounds out the top ten hog producing states with 1.7 million head.  An agricultural economist says high grain prices may be a contributing factor for the reduction in hog numbers.  Steve Meyer is with Partner of Production Agriculture, and often serves as a consultant with the National Pork Producers Council and the National Pork Board.  Meyer offers his outlook for the hog industry.