USDA says placements of cattle into feedlots continue high.

Participants: Gary Crawford and USDA livestock analyst, Michael McConnell

Transcript

What story does Friday's USDA cattle on feed report have to tell?

The main story that we see right now is that placements are still very strong, despite the fact that cattle inventories are relatively tight.

USDA livestock analyst Michael McConnell says producers continued to place more animals into feedlots during October, 5 percent more than October a year ago.

You know, it appears that strong prices for feeder cattle, as well as, you know, strong demand for beef is continuing to encourage producers to place their cattle in feedlots and have them fed out for beef production.

Yes, like they say in the detective shows, "Follow the Money," USDA says 750 to 800 pound feeders have been averaging 254 a hundredweight.

That's about 4 percent higher than what it was last year.

And last year's prices were pretty high as well.

Gary Crawford reporting for the U.S. Department of Agriculture.