what kind of

Yes bone-in picnic will make some fine pulled pork.
Yes it is from the shoulder.

The picnic cut is the bottom cut off the shoulder, while the pork butt is the top cut.
 
Picnics make great pulled pork. The only problem I have is deciding between skin on (with lots of smoky, crispy skin goodness) and skin off (with lots of tasty bark). :-?
 
The best pulled pork I've made has been from the picnic instead of the shoulder blade (butt).
 
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