Quality Grades on Beef

[manaftergodsheart413]

I have always been told that we should strive to produce choice beef for both quality and profit.Now I dont disagree on the quality part but would someone explain this to me about the prices and how it correlates with the different percentages of cattle that grade choice.

LM_CT150
St. Joseph, MO Mon Aug 6, 2007 USDA Market News Service

5 AREA WEEKLY WEIGHTED AVERAGE DIRECT SLAUGHTER CATTLE
Texas/Oklahoma/New Mexico; Kansas; Nebraska; Colorado; Iowa/Minnesota feedlots
For: Week Ending Sunday, 8/5/2007

This report is based on information provided by companies that agreed to
continue to participate in Livestock Mandatory Reporting on a voluntary basis.

Confirmed: 218,628 Week Ago: 210,591 Year Ago: 256,280


LIVE FOB BASIS - Beef Breeds

Head Weight Price Avg Wtd Avg
count Range Range Weight Price
STEERS
Over 80% Choice 2,342 1,240-1,435 90.00-92.50 1,378 91.40
65 - 80% Choice 17,007 1,135-1,450 89.00-93.00 1,365 91.70
35 - 65% Choice 40,308 1,100-1,450 89.00-92.50 1,307 92.11
0 - 35% Choice 2,073 1,050-1,380 91.00-92.50 1,256 92.00
Total all grades 61,730 1,050-1,450 89.00-93.00 1,324 91.97
HEIFERS
Over 80% Choice 1,463 1,150-1,325 90.00-92.00 1,221 91.40
65 - 80% Choice 10,583 1,075-1,385 88.50-93.00 1,231 91.85
35 - 65% Choice 33,327 1,000-1,375 90.00-93.00 1,168 92.12
0 - 35% Choice 813 1,070-1,200 92.00-92.50 1,147 92.06
Total all grades 46,186 1,000-1,385 88.50-93.00 1,184 92.04

DRESSED DELIVERED BASIS - Beef Breeds

Head Weight Price Avg Wtd Avg
count Range Range Weight Price
STEERS
Over 80% Choice 1,208 772-908 142.00-145.00 862 144.47
65 - 80% Choice 13,625 734-962 142.00-145.00 856 144.34
35 - 65% Choice 29,657 733-932 140.00-147.50 845 144.83
0 - 35% Choice 1,855 762-935 144.50-145.50 846 145.18
Total all grades 46,345 733-962 140.00-147.50 849 144.69
HEIFERS
Over 80% Choice 896 714-866 144.00-145.00 801 144.67
65 - 80% Choice 5,684 720-912 142.00-145.00 784 144.75
35 - 65% Choice 23,724 669-871 141.00-145.50 766 145.06
0 - 35% Choice 405 701-731 145.00-145.50 718 145.33
Total all grades 30,709 669-912 141.00-145.50 769 144.99

LIVE DELIVERED BASIS - Beef Breeds

Head Weight Price Avg Wtd Avg
count Range Range Weight Price
STEERS
Over 80% Choice 948 1,200-1,425 91.00-93.00 1,376 91.78
65 - 80% Choice 2,037 1,300-1,425 89.75-92.50 1,349 91.06
35 - 65% Choice 686 1,250-1,425 90.75-92.50 1,350 91.58
0 - 35% Choice - -
Total all grades 3,671 1,200-1,425 89.75-93.00 1,356 91.34
HEIFERS
Over 80% Choice 457 1,150-1,250 90.00-92.50 1,218 90.95
65 - 80% Choice 1,157 1,125-1,275 90.00-92.00 1,194 91.19
35 - 65% Choice - -
0 - 35% Choice - -
Total all grades 1,614 1,125-1,275 90.00-92.50 1,201 91.12

DRESSED FOB BASIS - Beef Breeds

Head Weight Price Avg Wtd Avg
count Range Range Weight Price
STEERS
Over 80% Choice - -
65 - 80% Choice 691 853-853 143.00-143.00 853 143.00
35 - 65% Choice - -
0 - 35% Choice - -
Total all grades 691 853-853 143.00-143.00 853 143.00
HEIFERS
Over 80% Choice - -
65 - 80% Choice - -
35 - 65% Choice - -
0 - 35% Choice - -
Total all grades - -

WEEKLY WEIGHTED AVERAGES
Head Count Avg Weight Avg Price
Live FOB Steer 61,730 1,324 91.97
Live FOB Heifer 46,186 1,184 92.04
Dressed Del Steer 46,345 849 144.69
Dressed Del Heifer 30,709 769 144.99

SAME PERIOD LAST WEEK
Head Count Avg Weight Avg Price
Live FOB Steer 58,391 1,318 90.63
Live FOB Heifer 45,088 1,183 90.80
Dressed Del Steer 45,474 857 141.39
Dressed Del Heifer 27,886 769 141.66

SAME PERIOD LAST YEAR
Head Count Avg Weight Avg Price
Live FOB Steer 85,684 1,309 80.52
Live FOB Heifer 53,666 1,180 80.60
Dressed Del Steer 51,943 865 128.04
Dressed Del Heifer 25,091 773 128.09

Source: USDA Market News Service, St. Joseph, MO
816-238-0678 email: [email protected]
http://www.ams.usda.gov/LSMarketNews

1100C

 

[Outrigger2]

some of it depends on age of cattle

 

[manaftergodsheart413]

Seems that as the percentage of choice goes up the price goes down.Why is this happening? Is the the discount much greater than the premium ? Personally I feel and know that it is. Producing choice beef has been nothing more than a marketing ploy used by the angus breeders to promote beef that really isnt better than anyone elses.

 

[Frankie]

Yep, we Angus breeders are shaking in our boots. ;-)

 

[Shorthornguy]

Price also varies according to supply and demand and what the packing houses can utilize for that time period. It works similar to the dairy and cheese markets.