Uneventful, is how we would describe last week for the U.S. Hide Market. There was a limited amount of business put together by U.S raw hide and wet blue sellers and their customers. Sale prices for the Steer hides that were traded last week were steady with what was paid for the same selections the prior week. There was a Branded Heifer sale and a few other sales that were reported at lower levels. Those sales prices are considered by most to be corrections to the real marketable level as the quotes they replaced were thought to not be accurate to the market. Again, The USDA’s Export Sales numbers for raw and wet blue hides were substantial, buoying seller’s spirits for a time, but buyers were unimpressed and the shine from those reported numbers soon dulled. Although U.S. Steer and Heifer hide producers could hold their sale prices steady last week, most involved in the trade doubted that those producers were able to move a week’s production. U.S. Cow hide marketers did not fare as well as those selling the Steer and Heifer selections last week. Not only could they not sell the week’s production, they had to take $1.00 to $2.00 less on most selections to move what was sold. Cattle slaughter here in the U.S. slowed last week but remained solidly above the 600,000 head. We can only speculate that the reason for the decline in the slaughter number is it appeared packers and feeders could not come to an agreement on the value of finished cattle. Reports from tanners remained unchanged last week as shoe upper tanners continue to reiterate that their finished leather business is just slow, and upholstery and hand bag sectors continued to say their businesses are okay. Prices last week did not change much so we will put the Heavy Native Steer hide price at between $60.00-61.00 per piece and we will leave the Butt Branded Steer hide selections value unchanged at $56.00-57.00 per hide. As for the Big Packer Heavy Texas Steer hides we will leave their worth at between $48.00 and $50.00 per hide.
The Export Sales Report released by the USDA on October 26, 2017 for the seven-day period ending Thursday, October 19th showed that 559,900 whole cattle hides, and wet blue equivalents were sold for export during that period. This number is down slightly from the prior week’s 581,000 pieces sold. China was the biggest buyer taking 276,500 units followed by Korea that took rather surprising 135,100 pieces. Equally impressive was the 559,900 pieces that were reported to have been exported during that week.
Federally Inspected Slaughter, (FIS) of cattle for the week ending Saturday October 21, 2017, was estimated to be 632,000 head, up from the estimated 622,000 head processed the prior week. Year to Date FIS is up 1,392,000 animals or 5.8 percent from the same period last year.
The U.S. Steer hide market has been basically steady for the last two weeks. The marginal gains in per piece Steer hide prices U.S. sellers could establish 3 to 4 weeks ago remain in place. But, these suppliers have not, to this point in time, been able to generate enough interest from tanners to add any upward momentum to the U.S. Steer hide market. The U.S. Steer hide suppliers continue to say they are well sold ahead, but it does not appear that enough sells have been made to justify those claims. In turn tanners say there is not enough finished leather business out there to use up the supply of raw hides, wet blue, and crust now in the international market. The general feeling of most U.S. sellers is that U.S. Steer and Heifer hides are not pressured much by the hides supplied from other origins, but that U.S. Cow hides are much more effected. However, most feel that leather business is better than tanners want to admit to. We know markets like to move so the current stale mate on prices will have to be broken soon.
Golf Quotes
“Golf is an awkward set of bodily contortions designed to produce a graceful result.” – Tommy Armour
