August Live Cattle futures closed sharply lower, marking the first close below the 50-day moving average since May 19. With the relative strength index at 40%, the market is leaning toward oversold territory. Pressure intensified following administration signals of lower beef prices, which triggered fund liquidation by speculative long holders. Structural headwinds also persist as the Cargill lockout reduces packer demand, dragging cash cattle down $2 this week from last week's record highs. Additionally, weekly export sales slowed to 8,100 metric tons, a whopping 31% below the four-week average due to elevated beef prices. Participants are now focused on Friday's USDA Cattle on Feed report, where average trade expectations stand at 101.4% for on-feed, 103% for placements, and 90.5% for marketings.