The technical action remains weak as a continued long liquidation trend has helped pressure as large and small speculators seem to be sellers. Open interest is on the decline as traders believe that there are major factors which are working to offset the outlook for tighter supply into the end of the year. Sluggish exports, increasing imports, burdensome cold storage and much higher than normal weights are all factors which could help boost short-term production. Demand is also a concern with weak consumer sentiment helping to switch beef demand away from higher-priced cuts to hamburger earlier than normal this summer. August cattle closed 40 lower on the session yesterday to 117.10. The market traded up over 118.00 early and higher on the day but the weakness in metal and energy markets, a set-back in the stock market and some strength in the US dollar are factors which helped to pressure the market to trade lower on the day and below Tuesday's lows. For the USDA Cattle-on-Feed report on Friday traders see higher placements for the month of May (up 13%) which could hold on-feed supply on June 1st higher than last year at near 100.7%. Marketings for the month of May are expected near 5% over last year. Low placements in March and April plus a noted increase in imports of feeder cattle are factors which might contribute to the higher placements for the month of May. Feeder cattle saw some early strength yesterday as well but pushed lower and to the lowest level since April 30th closing sharply lower in 5 of the past 6 sessions. Traders await news about cash cattle bids or offers this week after cash traded mostly $119.00 last week. Slaughter came in lower than expected at 124,000 head which is sometimes a signal of weak short-term demand from the packer. This brings the total for the week so far to 378,000 head, down from 383,000 last week at this time and down from 389,000 a year ago. Boxed beef cutout values were up 6 cents at mid-session yesterday and closed 6 cents higher at $198.00. This was up from $197.76 the prior week.