Reuters reports that the dip in hog futures follows an increase in cash prices. Traders say that the market faces pressure from large supplies of market-ready pigs.

"It just seems like some smaller packers got caught short, so they had to pay up for hogs in the cash market," says Altin Kalo, economist with Steiner Consulting Group.

August futures settled down .475 cent at 54 cents per pound while October futures lost .875 cent to end at 50.150 cents per pound.

"It doesn't necessarily fix the big issue the hog market has," said Kalo. "For a brief period of time, it created a little bit of a shortage and pushed up the cash market. Futures followed suit."

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