Chicago Mercantile Exchange (CME) live cattle futures edged lower on Tuesday on speculative long liquidation, worries about escalating tensions with China and a setback in wholesale beef prices, reported Reuters, citing traders.

CME August live cattle futures settled down 0.200 cent at 136.575 cents per lb and most-active October ended down 0.500 cent at 142.125 cents.

September feeder cattle futures fell 1.650 cents to finish at 181.450 cents per lb, despite a drop in corn futures, which tends to support the market by signalling cheaper feed costs.

"Funds had been big buyers of both lives and feeders the last couple of weeks, so I think there was some retrenchment," said Sterling Smith, director of agricultural research at AgriSompo North America.

Worries about US-China relations hung over equity and commodity markets, including livestock, as US House of Representatives Speaker Nancy Pelosi visited Taiwan despite warnings from Beijing.

"There is the potential for a trade row, meaning China doesn't want to buy (US) soybeans, pork or beef, or corn. Or they won't buy as much, or they won't buy as soon. That is the concern," Smith said.

In the US wholesale beef market, choice cuts fell $2.14 to $268.46 per hundredweight (cwt), pulling back from a two-week high set a day earlier, according to the US Department of Agriculture (USDA). Select cuts fell $1.35 at $241.55 per cwt.

CME hog futures ended mostly lower. August lean hog futures ended down 0.600 cent at 119.850 cents per lb and the most-active October contract fell 0.600 cent at 96.225 cents.

On a bullish note, the USDA reported the pork carcass value at $131.02 per cwt on Tuesday afternoon, a jump of $3.32 from Monday.