Cattle - Morning Report: The nearby futures continue to trade in a sideways to choppy fashion while deferred contracts remain in an uptrend. Open interest is low and the trade is sluggish as demand news remains weak, but the market faces a tighter supply period ahead. There are some short-term supply concerns as traders fear that a continued uptrend in feedgrain prices could spark some liquidation selling of breeding stock. August cattle closed slightly lower on the session yesterday after a volatile choppy trading session with a wide range. Some traders see higher grain prices as a factor which could spark higher meat prices down the road, and this helped to provide some fund trader buying at times during the session. Others see heat as a factor which has lowered consumer demand for beef at a time when higher grain prices are also encouraging the liquidation or at least "quicker than normal" movement of livestock to the market which is seen as a short-term negative supply factor. The market saw choppy to lower trade early with August pushing to the lowest level since June 28th. The surge higher in corn pressured the feeder cattle market early, and this added to the negative tone - CME Group.