Lean hog futures closed lower as well on profit taking after recent gains and new highs hit in some contracts last week and in distant months Monday along with concerns about near-term domestic demand for pork.
April lean hogs closed down 0.50 cent, or 0.5%, at 93.70 cents a pound. June, the most-active contract, was down 0.57 cent, or 0.6% at $1.0327.
Lean hogs also saw some pressure from China's interest rate hike as some investors exited long positions due to concerns that pork export sales there may be reduced from the larger levels shipped so far. However, other traders foresee pork exports to China and elsewhere remaining strong as world supplies tighten, contributing to a late-session rally off the early lows.
An outlook for tighter supplies of slaughter-ready hogs throughout the spring and into early summer also lent late support to help lift prices off their session lows, brokers said.
In the cash markets, pork processors were expected to bid mostly flat prices throughout the day. Most producers are more current, or up to date on marketings, and have fewer hogs available to offer for sale, said livestock dealers and brokers. Meanwhile, some processors may trim their slaughter schedules this week, mainly in weekend operations. Early projections for Saturday's slaughter are mostly around 30,000 head, about half of last week's estimated figure.
The seasonal trend for prices is higher, and with futures prices indicating higher prices into June, producers are reluctant to turn loose of more hogs at the current prices, a broker said.