LUBBOCK, TEXAS (RFD NEWS) — Fed cattle quality reached a historic milestone last week, with 89.4 percent of carcasses grading Choice or better, reshaping how premiums are determined across the beef complex. The shift is compressing traditional spreads and altering packer procurement signals.
According to USDA Agricultural Marketing Service weekly grading data, the share of cattle grading Choice or Prime climbed to an all-time record. That level significantly reduces the volume of Select beef available, which has historically been the benchmark for measuring quality premiums.
Operationally, a higher percentage of Choice and Prime narrows the Choice/Select spread, while increasing attention on the Choice/Prime differential. As Select becomes a smaller portion of the grading mix, pricing leverage increasingly centers on Prime premiums and branded beef program eligibility.
The trend reflects long-term shifts in genetics, feeding practices, and carcass weights. Longer days on feed and selection for marbling have steadily lifted quality grades over the past decade, even as cattle numbers tighten nationally.
Looking ahead, sustained high grading percentages could redefine how futures spreads and cash market negotiations interpret quality signals.
"Farm-Level Takeaway: Record Choice grading levels are changing how beef quality premiums are valued."
Tony St. James, RFD NEWS Markets Specialist
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