USDA Reports Rising Cattle Feedlot Placements

The USDA released the most recent Cattle on Feed report Friday.  So, what do the numbers tell the industry?

“The main story that that we see right now is that placements are still very strong despite the fact that cattle inventories are relatively tight,” said USDA livestock analyst Michael McConnell.  He added producers continued to place more animals into feedlots, noting that during October saw a 5% year-over-year jump.

“You know, appears at strong prices for feeder cattle, as well as strong demand for beef is continuing to encourage producers to place their cattle and feed lots and have them fed out for beef production.”

USDA says 750 to 800-pound feeders have been averaging $254 cwt, which is about 4% higher than what producers saw last year.  And as McConnell said last year's prices were pretty high as well.

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