Lean hog futures also fell after wholesale prices on Tuesday added to their recent losses.
October hog futures fell 0.2 cent, or 0.2%, to 85.50 cents a pound in trading at the CME. CME December hog futures dropped 0.25 cent, or 0.3%, to 82.90 cents a pound.
The USDA's pork carcass composite value, a measure of wholesale prices, on Tuesday was down $2.60 at $98.03 a hundred pounds. Wholesale prices have fallen steadily over the last couple weeks as producers have seasonally boosted their production. Hog producers typically turn out more animals starting in late summer, when cooler temperatures allow for more efficient hog-raising.
Pork prices are expected to continue to fade from recent record highs as slaughter rates grow--by as much as 17%--from mid-August to November.
Sharper-than-expected drops in wholesale prices have consistently weighed on the pork complex since traders are grappling with an extra-wide discount from cash prices to futures, which converge when a futures contract expires. Prices for October futures, meanwhile, remain above their highest-ever expiration price, which means traders currently expect the October hogs contract to set a record-high price when it expires in about six weeks.
Cash hog bids were reported weak to as much as $2 per hundred pounds lower on seasonal supply growth and limited buying interest ahead of Labor Day.
Packers won't need to purchase as many hogs as normal for next week's slaughter schedules, which could keep pressure on near-term prices.
Terminal markets traded from $1.50 to as much as $4 per hundredweight lower on a live basis with top prices from $58.50 to $63.00.
The USDA reported the average weight for barrows and gilts in Iowa/southern Minnesota last week was 263.5 pounds, up 1.0 pound from the previous week but still 2.1 pounds below a year ago. The latest figure was up 2.7 pounds from the year's low of 260.8 pounds hit the week ended Aug. 5.