Choice-select spread

[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.

 

[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.

 

[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!!!!

 

[Son of Butch]

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

 

[Son of Butch]

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]

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]

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 ?