August cattle pushed moderately lower early in Friday's session led by a weaker economic tone, weakness in other commodity markets and lower grain prices. Weakness in beef prices last week may have been offset by ideas that cash cattle could trade higher in the southern plains during the next few days. Lower weights, increased death loss and ideas that consumer beef demand might improve ahead with cooler weather helped to provide some underlying support. August cattle were able to hold above Thursday's lows to finish higher for the session and posted the highest close since July 13th. In addition, an upside turnaround in the US stock market was widely seen as supporting a midsession rebound for cattle. Many traders see progress in Washington as a positive force for the economy and supportive for cattle prices over the long-term. Drought in the southern plains and heat continuing for a few more days in the central part of the country could become a negative factor for consumer demand of beef.
On top of sluggish demand, the market faces the potential of "forced" selling from producers due to lack of pasture and range availability in the southern plains.