October cattle found some early support yesterday, which came as a surprise to many traders after a negatively received USDA Cattle-On-Feed report from Friday. Early strength was thought to have come from stronger outside markets. However, a turnaround from sharply higher to lower for the US stock market may have pressured the cattle market to close just slightly higher for the day. The market's focus may be on the beef market and the cash market during the next few weeks. Some traders remain nervous that once Labor Day holiday beef purchases are complete, a demand decline while there are rising feedlot supplies could create additional market weakness. Feedlot supply was 103.7% of last year on July 1st, and moved to 107.6% of last year on August 1st. With a strong beef market, some traders see cash cattle trading near steady at $114.00 this week. Packers are fearful of a drop in beef prices into early September and may be reluctant to pay up. The monthly cold storage report showed frozen beef stocks at the end of July at 418 million pounds, which was down 3% from last month but still up 8% from last year. The market normally sees a 3% increase at this time of the year so the 3% drop is considered supportive and could help spark some buying support early today. The estimated cattle slaughter came in at 129,000 head yesterday. This was up from 127,000 head last week and up from 128,000 head a year ago as this time. Boxed beef cutout values were up 54 cents at mid-session yesterday and closed 63 cents higher at $187.42. This was up from $181.59 the prior week, and is the highest beef market since April 20th.