The question in our last week’s Market Report was, “would tanners follow the higher asking prices that we expected would be put forward by U.S. Steer hide sellers”? The answer was yes. Tanners did come into the market and did buy a good number of Steer hides, and they did pay more for some selections. A few sales were reported as much as $ 1.00 higher than the previous week’s prices levels. We felt like at least a week’s production of Steer hides were traded last week. With many tanners looking to buy good grain quality hides, the U.S. Holstein Steer hides were the most sought after of the Steer hides. Demand for all the Plump Steer hide selections was not lacking. Sure, we again heard from numerous Asian tanners that their leather sales continued to lag, and that the drop split market remained sick. We also heard rumors that some tanners were asking to delay shipments or L/C opening because of slower than expected leather business. In spite of those complaints, we would have to describe last week’s Steer hide business as brisk. A lot of the hide sales that were made last week were done on Thursday and Friday, which would be considered normal if it were not for the fact that both China and Taiwan were closed on Thursday and Friday as they celebrated their Dragon Boat Festival holidays. With today’s modern communications, mobile phones, etc., there is no rest for many. At the close of business last Friday we would call the FOB plant prices for the seasonal-average U.S. Big Packer Steer hide selections to be for Heavy Native Steer hides $75.00, which was up $.50 from the prior week, and Butt Branded Steer hides up $1.00 for the week to $74.00 per hide. We are calling the last Friday price range for the Heavy Texas Steer hide selection to be $68.00 to $71.50 per piece plant basis, which is also up $1.00 per hide for the week. Sellers of U.S. Cow hides also reported that they considered last week a decent one sales wise. A good number of bid prices were lower than last traded price levels, but to our knowledge those bids were turned down by suppliers. In the end the Cow hide business that was booked, was done at least for the most part, at steady money.
The Export Sales Report published by the USDA on June 9, 2016 covering the holiday shortened week ending June 2, 2016 showed that 519,700 hides and wet blue equivalents were sold for export during the period. This number is down 45,200 units from the prior week’s 564,900 pieces contracted. China took 316,100 pieces or about 61 percent of the pieces sold during the week. Italy bought the second largest quantity booking 61,400 pieces, of which 53,500 pieces were wet blues.
The Federally Inspected Slaughter (FIS) for the week ending Saturday June 11, 2016 was an estimated 591,000 cattle. The Year-to-date FIS is now an estimated 12,907,000 head up 2.1 percent from a year ago.
Packers, processors, and traders, will be again asking higher prices this week for any Steer hides they put on their offer lists. The question remains, will tanners pay more for the hides they may need? It feels like there might be a touch more strength in the U.S. hide market. We say this because we feel, even with the higher slaughter numbers that are expected over the next month, that supplies remain well sold ahead. We also expect tanners will continue to shop for U.S. Steer hides to fill their needs for better grading raw material. Sellers of U.S. Cow hides have seen an increased demand over the last few weeks, and we expect that demand to continue this week. We think a big part of why there is increased demand for U.S. Cow hides, is that they look to be a good value when we compare their current sale prices with their offer levels. For this week, we expect the U.S. hide market to remain steady to slightly firmer. Time will tell.
Golf Quotes
“Golf, is in part a game; but only in part. It is also in part a religion, a fever, a vice, a mirage, a frenzy, a fear, an abscess, a joy, a thrill, a pest, a disease, an uplift, a brooding, a melancholy, a dream of yesterday, and a hope for tomorrow.”
-New York Tribune, 1916
