The market is still in the process of pricing in a bearish Cattle-on-Feed report and continued fears that the situation in Europe will lead to a sluggish world economy and weaker demand from US customers and from US beef importers. The jump in grain prices has added to the idea that short-term production could remain high. In addition, a limit-up advance in corn sparked a limit-down break in August feeder cattle, which are down as much as 7.7% in just 10 trading sessions. The grain move plus the economic situation was enough to spark a long liquidation selling trend yesterday in cattle and October cattle saw the lowest close in about 1 year. August cattle saw choppy to lower trade early but the limit-up advance in corn, technical selling from funds and sharply lower trade in the US stock market helped spark the late sell-off and the lowest close since May 2nd. The market continues to monitor slightly negative outside market forces is also trying to absorb negative news from the USDA Cattle-on-feed report from Friday plus a weak trend for beef prices helped to pressure. Boxed beef cutout values were down 48 cents at mid-session yesterday and closed 20 cents lower at $196.43. This was down from $197.49 the prior week. The estimated cattle slaughter came in at 128,000 head yesterday. This was up from 127,000 last week but down from 129,000 a year ago as this time. Long liquidation selling is also emerging as traders trim a hefty net long position.