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Big Muddy rancher

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I saw a ad for a bull sale that had Red angus and Simmental. They were proudly showing a picture of themselves and a customer looking at the customers 1600 pound steers. They commented on what he was bid but not the close out dollars on those steers. What is the carcass Wt. in the US that deductions start. I know in Canada they would be discounted about 25 cents a pound.
 

Turkey Track Bar

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Big Muddy rancher said:
I saw a ad for a bull sale that had Red angus and Simmental. They were proudly showing a picture of themselves and a customer looking at the customers 1600 pound steers. They commented on what he was bid but not the close out dollars on those steers. What is the carcass Wt. in the US that deductions start. I know in Canada they would be discounted about 25 cents a pound.

Hi BMR:

What a way to answer your question, but I'll say it depends. Depends how you sell, grid, branded beef, etc.

In general I'd say the target window weight is 600-900 lbs, with varying discounts either way...

From the AMS daily market report (linked below) it looks like the discount (on a carcass basis) for 901-1000 lb carcasses was -$3.96/cwt and for carcasses between 1000lbs and heavier the discount was -$18.64.

It's kinda funny with the grids/branded beef programs...if they are short of cattle it seems the top weight goes up, or there is little to no discount, and if cattle are plentiful, the weight goes down and/or the discount goes up. True supply and demand I guess!

Here's a link to the daily market report (for the day previous) If I remember correctly the quotes are the average of all prices/programs.

http://www.ams.usda.gov/mnreports/NW_LS410.txt

I hope this helps...


Cheers-

TTB :wink:
 

sw

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BMR, on our MBBA grid right now the weight limits 535 to 950 with discounts $20 for lights and $15 for heavies. Last year it was 550 to 1000 with $25 discounts both ways. We are with a different packer this year so had to negotiate a new grid. Some of the other grids are pretty strict depending on who the final customer is.
 

Turkey Track Bar

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BMR and interested others:

Here is another report "The National Daily Cattle and Beef Summary." It is more of a summary and links to each individual report. I think this one might be a little easier to use:

http://www.ams.usda.gov/LSMNpubs/PDF_Daily/DCBS.PDF

Cheers-

TTB :wink:
 

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