Choice-select spread

Backgrounding & feeding questions.
Post Reply
talltimber
GURU
GURU
Posts: 1340
Joined: Wed Apr 16, 2014 6:29 pm
Location: Southeast Missouri
Been thanked: 15 times

Choice-select spread

Post by talltimber » Wed Jun 21, 2017 9:07 am

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.



Dave
GURU
GURU
Posts: 8126
Joined: Mon Jul 12, 2004 1:35 pm
Location: Baker County, Oregon
Been thanked: 550 times

Re: Choice-select spread

Post by Dave » Wed Jun 21, 2017 10:54 am

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.

RiverHills
Trail Boss
Trail Boss
Posts: 306
Joined: Wed May 20, 2015 11:29 am
Location: Southeast Missouri

Re: Choice-select spread

Post by RiverHills » Wed Jun 21, 2017 1:15 pm

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!!!!

User avatar
Son of Butch
GURU
GURU
Posts: 6356
Joined: Mon Aug 30, 2010 6:44 pm
Location: Frost Bite Falls, Minnesota
Has thanked: 209 times
Been thanked: 417 times

Re: Choice-select spread

Post by Son of Butch » Wed Jun 21, 2017 2:32 pm

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

User avatar
Son of Butch
GURU
GURU
Posts: 6356
Joined: Mon Aug 30, 2010 6:44 pm
Location: Frost Bite Falls, Minnesota
Has thanked: 209 times
Been thanked: 417 times

Re: Choice-select spread

Post by Son of Butch » Wed Jun 21, 2017 2:41 pm

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.

Farmer13
Beginner
Beginner
Posts: 13
Joined: Sun Feb 10, 2019 1:34 pm
Been thanked: 4 times

Re: Choice-select spread

Post by Farmer13 » Sat Sep 28, 2019 1:38 pm

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

Stocker Steve
GURU
GURU
Posts: 9424
Joined: Mon May 02, 2005 8:28 am
Location: Central Minnesota
Has thanked: 147 times
Been thanked: 172 times

Re: Choice-select spread

Post by Stocker Steve » Mon Sep 30, 2019 11:46 am

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 ?
Stocker Steve

Post Reply