The “United States Hide Skin and Leather Association” held its Annual Meeting in Chicago last Wednesday and Thursday. The meeting was well attended with most of the companies that market U.S.A. raw and wet blue hides being represented at the gathering. The meeting’s schedule of events, and the presentations by the invited speakers were all well accepted by the attendees. One might have thought that with the prolonged weakness in the U.S. hide market that has slowly brought down the value of U.S. raw and wet blue hides from early April of this year to today’s levels, would had dampened spirits, but that did not seem to be the case for those attending this meeting. Rather, the feeling throughout the meetings, was that most all Steer hide suppliers had more recently sold themselves into a more comfortable sold ahead positions than they had been in for some time. That feeling among the attendees, may have gotten stronger after the USDA’s release on Thursday of last week the very large Export Sales number for U.S. raw and wet blue hide for the week ending Thursday, September 21st. On the negative side for the U.S. hide market, were the reports from China that their government continues to pressure tanners there to clean up their plants or face closures until they meet acceptable standards. While in the long term, this is better for the international community of tanners, but could temporarily affect hide prices. Also, on the negative side is the fact that the U.S. cattle slaughter last week, was the largest weekly total reported by the USDA this year. Tanners of course mention this information along with their statement that leather orders, particularly for shoes, continue to run below last year levels. We don’t know if the U.S. Steer and Heifer hide sellers moved a week’s production last week, but we do feel that those selling Plump steer hides did get steady price levels for what they did sell. On the other hand, all U.S. Cow hides that were traded were done at prices that were, on an average, down $1.00 per piece. We see no reason for us to change our weekly quotes on the FOB plant prices for the U.S. Big Packer Heavy Native Steer hide, and Butt Branded Steer Hide selections. That leaves the Heavy Native’s between $58.00 and $61.00 per piece and Butts at $54.00 to $56.00 per piece. We are also leaving what we consider the market price for Big Packer Heavy Texas Steer hide selection between $47.00 to $49.00 FOB plant basis.
The Export Sales Report released by the USDA on September 28, 2017 for the week ending Thursday, September 21st indicated that a whopping 946,600 whole cattle hides and wet blue equivalents were sold for export during that week. Shipments during this reporting period of 866,700 were equally impressive. The 220,000 pieces that were reported sold to Thailand was a topic for discussion in the industry.
Federally Inspected Slaughter, (FIS) of cattle for the week ending Saturday September 30, 2017, was estimated to be 648,000 head. This number is up from the estimated 637,000 head processed the preceding week, and is the largest weekly slaughter number reported so far, this year.
The Autumn Holidays will be celebrated this week in China, Korea and Taiwan. China and Korea will be on holiday for most all of this week and Taiwan will also be closed for business for a day or two. With many of the bigger buying destination countries out on holiday, this week that could translate into reduced sales for U.S. raw hide and wet blue sellers. Although we know from experience, that if tanner needs or wants to buy some raw material he will find a way to communicate with his suppliers.
Golf
If it really made sense to “let the club do the work,” you’d just say, “Driver, wedge to the green, one-putt,” and walk to the next tee.
