CHICAGO, July 10 (Reuters) - Chicago Mercantile Exchange hogs on Tuesday marked new lows, and the August contract fell by its 3-cents daily price limit, amid eroding cash prices and the roll by funds, said traders. Tuesday was the second of five days that CME livestock market funds which track the Standard & Poor's Goldman Sachs Commodity Index sold, or "rolled," August futures into deferred contracts. Futures drew more pressure from burdensome supplies ahead and mounting U.S. trade worries with China and Mexico, they said. "Traders are growing increasingly concerned about the export markets," said independent livestock futures trader Dan Norcini. "U.S. pork needs those markets desperately because we have seen that the industry is still in expansion mode," he said. Prices for slaughter-ready, or cash, hogs have fallen the past four sessions as packers try to conserve margins that recently recovered from red ink, a trader said. Processors are also having difficulty moving pork during hot summer weather when consumers tend to eat lighter meals, he added. July hogs ended down 0.725 cent per pound at 79.500 cents. August closed 3.000 cents lower at 69.775 cents, posting a new contract low. CME's hog limit will expand to 4.500 cents on Wednesday. LIVE CATTLE ENDS LOWER Fund liquidation and a looming supply buildup weighed on CME live cattle contracts, said traders. The positive thing about people talking about big supplies in July is it causes some feedlots to sell cattle sooner, which could mean fewer animals later, said KIS Futures vice president Lane Broadbent. "The bottom line is cash prices were strong last week, beef demand is still good ... cattle weights are manageable and packers are making a lot of money," said Broadbent, who is anticipating cash prices this week around $110 to $112 per cwt. On Tuesday packers did not respond with bids after feedlots in Texas and Kansas priced cattle at $116 per cwt. Last week, cash cattle in the U.S. Plains moved at $112 to $114 versus $106 to $108 a week earlier. August live cattle closed down 0.675 cent per pound at 105.450 cents, and below the 100-day moving average of 105.729 cents. October ended 0.800 cent lower at 107.825 cents, and under the 20-day moving average of 108.080 cents. CME feeder cattle closed moderately higher on short-covering and strong cash feeder cattle prices. August closed up 0.400 cent per pound at 151.850 cents. (Reporting by Theopolis Waters Editing by Chris Reese)