Cattle feedlot placements totaled more than 2 million head in November, up 17% from a year earlier. Marketings were 4% higher than in 2004 in November, but the net result was a sizable year over year increase in feedlot inventories at the beginning of December. The inventory at the beginning of the month stood at 11.7 million head, up from 11.3 million a year earlier. The poor condition of the winter wheat crop in the southern Plains states was a key factor in the high placements. Many producers were unable to graze wheat in November, forcing them to move cattle into feedlots. Traders had anticipated high feedlot placements so the report should be already factored into cattle futures. Still, if there is an effect - it will probably be negative.