ANALYSIS: The Aftermath of a Year with Record Low Select Grading

Select grading has been declining since around August, with two record lows set in December. This decline is partly due to reduced feeder cattle imports from Mexico. Other contributing factors include improving domestic cattle genetics and higher cattle prices, which are prompting some producers to hold onto cattle longer to increase their weights. This practice results in more cattle grading Prime and Choice.

This shift in grading has significantly affected Select material availability, as evidenced by the Select loin cutout price. Comparing...

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