October cattle closed moderately lower on the session yesterday, as a negative tone for the cash market was thought to be offset at times by support from outside markets. The cattle market traded moderately lower on the session early, with building concern for weaker beef demand this week as well as ideas that cash cattle may trade lower during the next few days. Some traders feel that cattle faces the continued possibility that high corn prices, higher prices for alternatives and the lack of available pasture and range could drive up short-term production at the expense of 2012 production. This may be reflected by reports that many in the market continue to lower 2012 production forecasts but increase their 2011 production outlook. Some traders noted that restaurant and outdoor grilling demand slowed to a crawl on the East Coast last weekend, and that ongoing clean-up efforts are likely to keep demand weak. Many consumers planned for the worst and have plenty of food stored up, which is expected to boost supermarket re-stocking levels. There is one less slaughter day next week, and many traders see slower demand from the packer for beef going into early September. The surge higher in the stock market as well as higher grain prices were thought to have supported buying in some 2012 contracts to support a general move higher on the day. The estimated cattle slaughter came in at 127,000 head yesterday. This was up from 124,000 head last week but down from 129,000 head a year ago as this time. Boxed beef cutout values were up 11 cents at mid-session yesterday and closed 10 cents lower at $186.20. This was down from $187.42 the prior week, and is the lowest since August 17th.