Lean hog futures also fell sharply on pressure from multiple fronts, including lackluster U.S. demand and the stronger dollar.
CME lean hogs for June closed down 2.72 cents, or 3%, at 89.25 cents per pound. The July contract dropped 3 cents, the daily trading limit, to 89.32 cents. Three cents is the largest one-day decline allowed under exchange rules.
Poor weather has hindered summer grilling around the country, hurting demand. Hog futures have fallen sharply in recent weeks, pushing prices below technical support levels, which triggered more selling, analysts said.
Both lean hogs and live cattle prices have suffered due to widespread fund liquidation, analysts said.
Cash bids for hogs were reported steady to weaker in the direct markets. Most processors have sufficient supplies through midweek or beyond. A few plants need additional loads to complete their slaughter schedules for later in the week, but prices could trend flat to weaker on limited buying interest ahead of the Memorial Day holiday next Monday, according to livestock dealers and market managers.
Seasonally tighter supplies and resistance to weaker prices among producers could limit price declines, analysts said.
The terminal markets are trading generally steady with top prices from $63 to $65 on a live basis.
The latest Dow Jones Newswires pork packer margin index was minus 46 cents per head, compared with minus $4.66 the previous day.
The USDA's pork carcass composite value, a measure of wholesale prices, for Friday was $95.52 per hundred pounds, down $1.09 from the previous day.