Lean hog futures also fell on mixed signs that cash prices have weakened this week as the complex continues to reflect an ongoing seasonal expansion in supplies.
October hog futures fell 0.77 cent, or 0.9%, to 88.22 cents a pound in trading at the Chicago Mercantile Exchange. CME December hog futures fell 0.82 cent, or 1%, to 84.32 cents a pound.
Futures again traded lower as traders evaluated futures' historically wide discount to cash prices. The spread between the two prices--most recently, about 16 cents--requires that one or both of them moves sharply in the next seven weeks. That's because futures and cash prices converge as a contract expires.
Cash prices are falling from a record-setting series of prices in July and August after China moved to boost pork supplies there and a Midwestern heat wave tightened supplies. Due in large part to that run of extra-high prices, October contracts still trade more than 8 cents above their highest closing price in history.
Cash prices were considerably mixed Monday as reports nationwide included sharp decreases of as much as $6 a hundredweight to increases of $2. Trading has been light as packers have ample supplies on an ongoing seasonal expansion in supplies.
Predictions for a weekend slaughter above 50,000 are driving hopes that prices may stabilize by week's end.
The weekly total slaughter is projected to be about 2.1 million and rates are expected to rise 10% from that level into October.
The pork carcass composite value from the USDA on Monday fell 97 cents to $106.69 a hundred pounds.