CHICAGO, May 18 (Reuters) - Chicago Mercantile Exchange live cattle and feeder cattle futures dropped on Wednesday as traders reduced risk amid steep losses in the stock market, analysts said.

Lean hog futures strengthened at the CME.

Cattle futures are more sensitive than hogs to falling stock prices, said Dan Norcini, an independent livestock trader.

Wall Street fell on worries about the U.S. economy after retailer Target became the latest victim of surging prices.

High prices also threaten to reduce demand for U.S. meat, particularly expensive cuts of beef, traders said.

"There does not seem to be enough bullish fundamentals developing as of yet to spur solid buying interest in the cattle futures," Norcini said.

CME June live cattle futures dropped 1.500 cents to close at 131.500 cents per pound. Most-active August live cattle slid 1.775 cents to finish at 131.700 cents per pound and reached its lowest price since Nov. 2.

August feeder cattle ended down 0.975 cent at 165.800 cents per pound and set a new low of 164.600.

Traders are waiting for the U.S. Department of Agriculture to issue a monthly Cattle on Feed report on Friday.

Some U.S. producers have reduced their herd sizes due to drought and high feed costs.

Based on anticipated tight supplies of cattle next year, 2023 beef production is expected to decline 6.8% to 26 billion pounds, the USDA's Economic Research Service said in a separate report. As a result, domestic beef consumption in 2023 is expected to fall about 7% to its lowest level since 2015, the report said. Cattle prices in 2023 are expected to increase near record highs, the USDA said.

In CME's hog market, meanwhile, technical buying, demand from pork processors and tightening supplies helped support futures, traders said.

June lean hogs ended up 0.950 cent at 106.100 cents per pound. July lean hogs rose 0.775 cent to 108.525 cents per pound.

(Reporting by Tom Polansek in Chicago; Editing by Amy Caren Daniel)