Cattle futures fell for the second time this week as US equities slumped and the dollar gains, raising concern that beef demand may drop.

The dollar gained as much as one percent against six major currencies, including the euro and the yen, increasing the cost of US beef for importers.

The Standard & Poor's 500 Index of equities dropped as much as 1.5 percent, while rising unemployment in the US which is estimated to reach 10 percent this year may also depress beef demand.

Cattle futures for August delivery fell 0.9 cent or 1.1 percent to 80.825 cents per pound on the CME. The most-active contract dropped 19 percent in the past year. Feeder-cattle futures for August settlement fell 0.15 cent or 0.2 percent to 96.175 cents per pound.

Wholesale choice beef fell 0.2 percent to US$1.4 a pound at midday, USDA data show. The price still is up 1.2 percent since June 5, when it reached US$1.3865, the lowest since April 9.

Retailers returned to the market last week and bought some end-meats, which include beef chuck and round cuts, said Troy Vetterkind, the owner of Vetterkind Cattle Brokerage in Chicago.

Vetterkind said the retailers were getting some products in position ahead of Father's Day (June 21) and the Fourth of July, when US consumers often cook outdoors.