Very weak consumer sentiment plus the possibility of a short-term boost in supply due to soaring grain prices could keep nearby cattle futures on the defensive over the near-term. Outside market forces are very weak for commodity markets this morning and until consumer demand shifts to a better level, sellers could remain active. The short-term demand fundamentals continue to look weak as summer heat and humidity dent consumer demand. In addition, there is a tendency for producers to move a few more cattle to market during periods of near record high feed prices. This tendency could increase into the fall as pasture conditions deteriorate. August cattle closed moderately lower on the session yesterday and near the lows of the day. The market saw choppy to higher trade early but gradually pushed lower on the day and moved to the lowest level since June 28th. The market saw further weakness overnight as beef prices remain soft and fund selling emerged for most commodity markets with a deflationary tone to gold, energy markets and global stock markets. Ideas that the cash market can trade higher this week helped to provide some support. However, traders are nervous that consumer demand is weak and that the economy is sputtering and this helped to limit the advance. Ideas that packers may be short bought on upcoming needs helped to support. Other traders talked of a higher showlist and weak beef prices this week as reasons to suspect that cash markets will struggle. The estimated cattle slaughter came in at 126,000 head yesterday. This brings the total for the week so far to 381,000 head, up from 257,000 last week at this time but down from 387,000 a year ago. Boxed beef cutout values were down 90 cents at mid-session yesterday and closed 54 cents lower at $187.81. This was down from $193.22 the prior week and is the lowest beef market since April 19th.