Heavier Feeder Cattle Placements Amid Meat Processing Plant Issues with Elliott Dennis

Two current drivers of the fed cattle market are domestic red mean demand and corn prices. With December pre-plant corn prices hovering around 70 cents per bushel higher than the five previous December corn contracts, that means higher feed costs on feedlots. And, even with red meat prices rising at the grocery store, consumer demand continues to be strong, creating incentives to continues placing cattle, even amid concerns about packing plant capacity. Elliott Dennis, assistant professor of livestock marketing and risk management in the Department of Agricultural Economics, joins to discuss heavier feeder cattle placements and meat processing plant issues.