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Choice-select spread

Posted: Wed Jun 21, 2017 9:07 am
by talltimber
What is it, and what do it do? What does this relationship tell us?

I'm assuming it's the price difference between the boxes of beef. What's in the box, something that's graded certainly.

Re: Choice-select spread

Posted: Wed Jun 21, 2017 10:54 am
by Dave
It is the difference in the price of hanging beef that grades choice and beef that graded select. It tells you if you should continue to feed cattle in an attempt to make choice or just market them in condition that would be graded select.

Re: Choice-select spread

Posted: Wed Jun 21, 2017 1:15 pm
by RiverHills
We sent some fats out that were killed on 6/6/17.
The steers were 15m average #1250

Hanging price
Select. $199.93


Choice. YG 2. $228.89.
YG 3-4 $228.69

Prime. YG 2 $240.75
YG 3-4. $240.54

CAB. $3.8 premium

Carcass Wt. 800 x $199.93 =$1599.44
$228.89 =$1831.12

That's $231.68 spread per head
It goes to show that people pay for quality!!!!

Re: Choice-select spread

Posted: Wed Jun 21, 2017 2:32 pm
by Son of Butch
RiverHills wrote:It goes to show that people pay for quality!!!!

Goes to show that you will get docked for delivering lower quality!!!

current spread is 29 cents hanging weight between choice and select ($232 on 800# h.w.)
In reality it shows you how much you were docked for producing lower quality.... Select rather than Choice

currently 12 cent dock from Prime to Choice ($96 on 800# h.w.)
So 41 cent dock from Prime to Select ($328 dock on 800# h.w. from prime down to select)

1.50 lb live weight = $2.45 lb hanging weight

Re: Choice-select spread

Posted: Wed Jun 21, 2017 2:41 pm
by Son of Butch
talltimber wrote: What's in the box, something that's graded certainly.

You got it... all the cuts from the steer that was graded except the liver, heart and tongue.

Re: Choice-select spread

Posted: Sat Sep 28, 2019 1:38 pm
by Farmer13
Found this thread when searching the topic, the current spread is $22.72/cwt. https://www.ams.usda.gov/mnreports/lm_xb403.txt

This would indicate a shortage of choice grade cattle?? I assume this is due to cattle being marketing at younger age/lighter weight so that the feeder can minimize losses?? Just curious on peoples' thoughts with more knowledge on this than me.
Thanks

Re: Choice-select spread

Posted: Mon Sep 30, 2019 11:46 am
by Stocker Steve
No shortage of anything in ag, except perhaps for hemp. :cowboy:

Spread says red meat eaters want tender steak more than they want burger.

Wonder if fake meat will increase the spread longer term ?