LIVESTOCK-Cattle, hogs fall on stocks, dollar climb

* Cattle slide on lower cash, corn

* Unease mounts before cattle report

* Hogs down on fund selling, cash

By Theopolis Waters

CHICAGO, Aug 18 (Reuters) - U.S. cattle futures fell on Thursday to post the biggest two-day slump in five months amid concerns over a slowdown in global growth that could dent demand for meat.

Futures were also pressured by a surge in the dollar, which could blunt exports, and a fall in cash market prices.

U.S. stocks plunged more than 3.7 percent after data pointed to a slowing U.S. economy that sparked concerns that the country could go into another recession. [ID:nN1E77H1QJ]

Consumers might shun expensive beef for cheaper chicken or pork, a CME cattle trader said.

Hog futures also fell, getting additional pressure from expectations that cash hog and pork prices may have peaked heading into the Labor Day holiday.

Deferred live cattle and hog futures were also hit by the lower CBOT corn market because reduced input costs might cause livestock producers to increase herds.

"Cattle guys here are already nervous about the cattle-on-feed report Friday, and Wall Street's implosion made matters worse," said Joe Ocrant, president of Oak Investment Group.

Analysts expect the government's Friday report to show cattle supply as of Aug. 1 rising 7.3 pct from a year ago. The data is also expected to show a 17.3 pct jump in July placements and 3.5 pct decline in July marketings.

"The trade is clearly disappointed by the cattle-on-feed projections, cash cattle is breaking and traders are panicking," said Rich Nelson, director of market research with Allendale Inc.

HOGS DOWN ON FUND SELLING

Cash cattle on Thursday traded at $114 per hundredweight, down $2 from last week, curbing earlier enthusiasm for higher prices due to profitable packer margins and brisk beef demand.

USDA said the average price for wholesale choice beef Thursday morning was up 77 cents per hundredweight at $186.71, the highest since April 20.

U.S. beef plant margin on Thursday was estimated at a positive $45.85 per head, compared with a positive $38.20 on Wednesday, according to HedgersEdge.com.

August cattle 2LCQ1 were down 1.750 cents per lb, or 1.51 percent, at 114.100 cents. October 2LCV1 was down 2.000 cents, or 1.7 percent, at 115.400.

Feeder cattle finished lower in sympathy with live cattle as traders awaited Friday's government cattle data.

August feeder cattle 2FCQ1 closed down 1.725 cents, or 1.28 percent, at 132.775 and September 2FCU1 was down 2.200 cents, or 1.62 percent, at 133.225 cents.

CME hogs ended lower on fund selling sparked by the plunge in the stock market.

"Deep months reacted to the big equity market breakdown, but some initial losses were in anticipation of seasonal fundamental weakness," said Dan Vaught with Vaught Futures Insights.

Cooler weather, especially during autumn, should increase hog weight gains which should weigh on cash.

October 2LHV1 closed down 0.575 cent, or 0.66 percent, at 86.825. December 2LHZ1 settled down 1.100, or 1.31 percent, at 83.125. (Reporting by Theopolis Waters)