CHICAGO (Dow Jones)--U.S. lean-hog futures were mostly lower as markets fell broadly and supplies are expected to grow in coming weeks.
The August hog contract, which expires Friday, was up 0.60 cent, or 0.6%, to $1.06 a pound. October hogs were down 1.22 cents, or 1.4%, to 87.9 cents a pound.
Futures were pressured by another broad-market selloff as investors worried about economic weakness in the U.S. and a widening debt crisis in the euro zone. The Dow Jones Industrial Average was recently down 393 points to 10846. Stocks have swung wildly in recent days as investors have sold riskier assets.
Analysts widely expect supplies of slaughter-ready animals to grow in coming weeks. As a recent heat wave has faded into milder temperatures, hogs can gain weight more easily, which translates to more pork produced per animal.
Brokers also say a recent prolonged rise in prices for cash hogs and fresh pork is likely coming to an end as supplies grow and China shows signs of stabilizing its rising food costs.
Cash hog prices are expected to be steady to $1 a hundred pounds lower on limited buying interest. Many plants are well supplied with hogs for this week and are bidding cautiously for additional loads to arrive next week. Some plants that need a few more loads to complete this week's slaughter schedules may pay steady prices, said livestock dealers and market managers.
Expectations for supplies of slaughter-ready hogs to undergo a seasonal increase, likely beginning next week, may weigh on cash prices. Average hog weights may have hit a low for the summer and year last week or will do so this week since lower temperatures have moved into the Midwest.
The U.S. Department of Agriculture's pork-carcass composite value Tuesday fell 66 cents to $109.53 a hundred pounds after hitting a record high on Monday for the ninth time in 10 days.
Analysts predict Wednesday's hog slaughter to be around 407,000 head.
The latest Dow Jones Newswires pork-packer margin index was plus $4.12 per head, compared with plus $6.18 the previous day.
The terminal markets are expected to trade mostly steady to lower with tops from $70 to $74 a hundred pounds.
The latest CME two-day lean-hog index, calculated using USDA market data, for Monday was up 0.19 cent to $1.0742 a pound.