KANSAS CITY (Dow Jones)--With ideas of pressure on futures markets Tuesday, traders said there is an increasing likelihood that cash cattle prices this week will be lower as well.

As of Tuesday morning, inquiries from packer buyers were called light, even though many traders calculated that packer inventories of slaughter animals was not abundant.

Overnight futures markets are lower because of concerns about the economic stability of some European countries and because of saber rattling in the Korean peninsula. Many traders are getting out of various markets and going to the U.S. dollar for strength.

However, the higher dollar value can cut into export demand over the long term, and some cattle traders wondered about the effect this might have on cattle markets.

Cattle traded last week at mostly $97.50 in Texas, $97 to $98 in Kansas and at $96 to $97 in Nebraska. In dressed markets, cattle sold at mostly $154 to $155.

The HedgersEdge packer margin index is a plus $52.90 per head, compared with the previous index of a plus $40.00.

The U.S. Department of Agriculture reported its latest choice boxed beef composite carcass price at $167.00 per hundredweight, down $0.20, while select beef was unchanged at $161.06. The volume of fabricated loads was 124 and there were 60 loads of trimmings and coarse grind product reported.

Urner Barry's Yellow Sheet said weekend clearance of boxed beef was rated average to slightly better than average. Summerlike weather in some states was conducive to grilling over the past weekend, spurring sales at the retail counter.


-By Lester Aldrich, Dow Jones Newswires; 913-322-5179; lester.aldrich@dowjones.com