Last week’ U.S. hide market was active. For Steer/Heifer productions, sale prices remained steady or moved slightly lower, let’s say up to $1.00 lower. At the same time, sale prices for U.S. Cow hide were mixed, with the values of all selections (other than the Native Cow hide selection) moving marginally higher. Last week’s USDA Export Sales Report on U.S. raw hides and wet blue hides for the week ending Thursday, July 27, 2017 showed that many pieces were traded during that period. That same report showed that a good number of raw hides and wet blue hides were shipped out of the country during that week. That report was the third one in a row issued by the USDA that delivered bullish numbers for both sales and shipments of U.S. hides. Last week’s estimated cattle slaughter number released by the USDA on Friday showed that packers continued to process cattle at or near their current capacity levels. While tanners continue to complain about their difficulties, U.S. hide prices have come down to levels we have not seen since 2009. These lower U.S. hide prices have encouraged a respectable number of tanners to step into the market, despite their continued complaints about finished leather orders. They must be thinking that the current U.S. raw hide prices are workable for them going forward, and that these prices may not be around for long. The Big Packer and equivalent seasonal average Heavy Native Steer hides were reported to have sold late last week at $62.00 per piece FOB plant basis. The price for Big Packer Butt Branded Steer hides at the end of last week, depending on who you spoke with, was between $55.00 and $57.00 FOB plant basis. The Big Packer seasonal average Heavy Texas Steer hide price had steadied itself last week, finishing the period between $50.00 to $51.00 per piece FOB plant. Other than the reported drop in the Heavy Native Cow hide value, the other U.S. Cow hide selections increased by $1.00 to $2.00 per hide.
The Export Sales Report released by the USDA on August 3, 2017 for the 7-day period ending Thursday July 27, 2017 stated that 685,200 whole hides and wet blue equivalent were sold for export during that week. This is a large number as it was expected to be. China was the big buyer booking 380,700 of the pieces sold.
Federally Inspected Slaughter (FIS) of cattle for the week ending Saturday August 5, 2017 was estimated 634,000 head. For the same week, last year, the FIS was 582,892 animals. Year-to-Date FIS is estimated to be up 1,879,000 head or 5.9 % from a year ago.
Did U.S. hide prices bottom last week? We think they may have, but we must see what this week brings before we can say for sure that prices are grounded. U.S. Cattle hides are as cheap as they have been since 2009 when we were crawling out of the recession. U.S. economy is growing at 2.7 percent rate, China’s economy is growing at 6.7 percent, EU is recovering. U.S. Stock Market indexes are at record highs, prices on other commodities have been moving higher and the U.S. Dollar has weakened. Leather orders normally increase in the Fall, and again U.S. hides are cheap. A firmer U.S. Hide Marker would be best for everyone.
GOLF QUOTE
“Golf is a mystery—as much as one as the universe, solar system, electricity, or ironic affinities.”
– Paul Fallico
“Golf is not, on the whole, a game for realists. By its exactitudes of measurements it invites the attention of perfectionists.”
– Heywood Hale Broun
