The All China Leather Exposition came and went during the first three days of last week. The reports from those in attendance were pretty much consistent. Everyone agreed that the show was well attended, better than last year’s Shanghai show, and much better than this year’s Asian Pacific Leather Fair held in Hong Kong this last March 30th through April 1s. By all accounts, the Hong Kong show was one of the worst ever. Most everyone agreed that even though there were a lot of people at the ACLE, not a whole lot of hide business was done. Sellers who went to the show with the expectation of getting a little better money for their hides did not. Buyers at the show expecting to buy some raw material at a little less money did not. What business that was reported on most any hide or wet blue selection, was booked at steady money. There were not a lot of U.S. Steer hides offered. Those sellers who were inclined to accept steady money had no problem clearing their offering lists. However, to get a dollar increase above last traded levels was not in the cards. In regards to leather sales, tanners in attendance reported that they did not have a good show. Most sellers came away with few orders, and the feeling that demand for their leathers would be far lower than a year ago. All last week the international equity and commodities markets remained volatile. This fact, along with the uncertainty regarding the growth of the Chinese economy, did not instill confidence in buyers or sellers of hides or leather. U.S. Steer hide values at weeks end remained steady with levels earlier in the week. Big Packer Heavy Native Steer, 64/66 lb hides were at levels of $ 77.00 per piece, and the 64/66 lb. Big Packer Butt Branded Steer hides were $ 75.00 per piece FOB plant basis. Some of each selection were sold at slightly lower price levels, and some at slightly higher price levels during the week, so let’s call the price unchanged. We did not hear much regarding Heavy Texas Steer hide trades, but have to think their value was also unchanged at USD 73.00 per hide FOB plant for the heavy 66 lb. and up selections. The lighter weights sold for less. Dairy Cow hide sale prices, like those on the Steer hide selections, remained unchanged as did the sale prices of the Plump Native Cow hide selection. Branded Cow hide suppliers were unable to find enough buyer interest to make a market.
The Export Sales Report released by the USDA on August 27, 2015 showed that 458,100 cattle hides and wet blue equivalents were sold for export during the week ending Thursday August 27, 2015. This number was up considerably from the previous week’s reported sales of 341,000 units. China was credited with taking 246,900 pieces or about 54 percent of the total sales. The second biggest buyer was Korea with 80,900 hides and wet blue equivalents purchased. The Weekly Exports, (actual shipments), number reported by the USGA for the same week was 695,200 hides and wet blue equivalents, which for the third week in a row, was a good number.
The Federally Inspected Slaughter (FIS) for the week ending Saturday September 5, 2015 was an estimated 556,000 cattle, up somewhat from the prior week’s estimated FIS of 545,000 animals. For the same week last year the FIS was only 522,800 head, that week was the “Labor Day” holiday week.
Our national “Labor Day” holiday will be observed here in the U.S.A. on Monday, September 7th. With everyone either returning to their offices after attending the Shanghai show, or heading to Milan for the Lineapelle, it is expected that this week will be rather quiet. Based on the information and feeling that people came away from Shanghai with, we expect hide prices to remain in a very tight range for the near term. We feel this will benefit both hide producers and tanners.
A Golf Joke
Golfer: “What a day. I’ve never played this badly before!”
Caddie: “Really? I didn’t realize you had played before!”
