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Angus executive cites opportunities in Choice and Select spread

The CEO of the American Angus Association says price variations matter in the spread between Choice and Select beef. That gap varies seasonally, with some predictability in the highs and lows, said Mark McCully. The spread is low in late winter when there’s less demand for beef middle meats, he said, but that changes as the weather warms.

“Specifically into May and June what we have is both a combination of maybe some of our lowest grading periods as well as some of our highest demand periods for rib and grilling meat,” said McCully, in comments provided by the American Angus Association.

Summer holidays feature grilling meats, boosting demand for high-quality cuts, widening the Choice-Select spread, according to McCully. While a cattleman might not be able to adjust calving times, McCully suggests management adjustments that make it possible to have feeder cattle ready when demand is strongest.

“There may be some opportunities to modify your growing program to where those cattle may come out a little bit sooner and maybe take advantage of that spring high,” he said.

The feeder cattle price will vary based on the anticipated month the animals will be finished, said McCully.