U.S. lean hog futures closed lower after sliding pork prices in China stoked worries about demand.

CME lean hogs for August fell 0.725 cent, or 0.7%, to $1.002 per pound.

China's high pork prices, and expectations they would buy U.S. pork, have fueled the market recently, but the country's commerce ministry said Tuesday that pork prices there fell 0.2% last week, the first decline since April.

Expectations that China will be a big buyer of U.S. pork "might not be the case if they've already managed to set a cap on prices," Vaught said.

Cash hog prices were reported mostly steady as some pork plants were purchasing additional loads to fill this week's slaughter schedules. Selling interest has been limited so far this week, due in part to lighter average weights following last week's heat wave, said livestock dealers and market managers.

Cash prices Wednesday are expected to be mostly steady. Some dealers and analysts predict demand for hogs could soften by late in the week since four plants are scheduled to be closed Monday. Three will be down for a floater holiday and another normally takes Mondays off due to its four-day work schedule during the summer.

The terminal markets traded mostly steady with one location sharply higher. Top prices ranged from $65 to $72 a hundred pounds on a live basis.

The USDA's pork carcass composite value, a measure of wholesale prices, on Monday rose $1.35 to $100.28 a hundred pounds.