U.S. Steer hide prices came under some downward pressure last week. Packers and dealers tried to hold the line but not all of them were able to do so. There were just not enough tanners willing to pay the steady price levels that most sellers were looking for. Oh yes, there were a few selections and productions that sellers were able to get steady money for, but it did appear that more of the hides sold were booked for a dollar or two lower than last traded levels. How many hides were sold? It is difficult to say, but it is doubtful that number was equal to production. This scenario is a repeat of the prior weeks, when sales also look to have fallen below production numbers. During the week, tanners everywhere continue to complain about the lack of leather orders and lower prices for the orders they are receiving. We continue to hear about credit problems for tanners in China. The one positive report from China was that the northern upholstery leather tanners have seen better buyer interest for their finished leathers and their splits. We received middling reports out of Lineapelle in Milan and the Paris leather show. As of today we would peg U.S. Steer hide prices at the following levels. Big Packer Heavy Native Steer hides, down $1.00 at $76.00 per piece, and Big Packer Butt Branded Steer hides down $1.00 to $2.00 at $73.00 to $74.00 per piece, both selections FOB plant basis. Heavy Texas Steer hide values continued to be quoted in a wide range to the reporting services, but we would have to put their value, depending on the production, at between $67.00 and $70.00 FOB plant basis. Cow hide selections last week saw an increase in buyer interest. As the previous week, Plump Branded Cow hides saw good interest and prices increase across the board. Again, we attribute this interest to the fact that the lower price for this selection has made them attractive to tanners. Dairy Cow hides were moved in limited quantities at more or less steady prices. Of course those sale prices, like those of the Plump Cow hides, vary dramatically depending on origin.
The Export Sales Report released by the USDA on September 17, 2015 showed that 271,000 cattle hides and wet blue equivalents were sold for export during the holiday week ending Thursday September 10, 2015. This number was down 153,300 pieces from the previous week’s reported sales of 424,300 units. Yes, it was a holiday week but that in itself does not explain such a low sales number. China purchased 157,100 of the units sold or 58 percent of the week’s total. Korea was the second biggest buyer taking 67,000 hides and wet blue equivalents. The Weekly Exports, (actual shipments), number reported by the USDA for the week ending September 10th was 451,000 hides and wet blue equivalents.
The Federally Inspected Slaughter (FIS) for the week ending Saturday September 18, 2015 was an estimated 576,000 cattle. One of the largest numbers we have seen in some time and well above the prior holiday shortened week’s estimated FIS of 501,000 animals. The FIS for the same week last year was the 573,994 head.
If buyer interest and sales volume do not pick-up this week the continued lack of sales will without a doubt, eat further into hide suppliers sold ahead positions. One has also to expect that tanner’s raw material inventories are lower than they would like them to be. Our guess is that there is a good round of business on the horizon, at prices to be determined. Will that round of trading take place this week or next or the week after that? We shall see.
Golf Quotes
“If profanity had an influence on the flight of the ball, golf would be played far better than it is.”
Horace G. Hutchinson
“Nobody asked how you looked just what you shot.”
Sam Snead
