THE HIDE MARKET – DECEMBER 26, 2017
As expected, the pace of business in the U.S. hide market slowed dramatically last week as many involved in the marketing of U.S. raw and wet blue hides worked a short week. Many companies closed early for various holiday celebrations as the Christmas Holiday fell on Monday this year. For this reason, our Market Report is a day late this week. Supplier’s offering lists last week were pretty much the same as prior week’s lists. There were some lists with an increased number of hides or selections on them, but no large increase in offerings. Also, some small increases in asking price could be found for some selections on a few of those offer lists. At the start of the week, tanner’s bids were limited, and at levels that were below their last purchased levels. As the week progressed, a few tanners did raise their bid prices and some Steer hides were traded. For the limited number of U.S. Steer hides that were sold last week, prices were for the most part steady. Of course, there were a few Steer hide sales reported at marginally higher prices, but at the same time, there were a few sales reported at prices one would call marginally low. For lack of any conviction, we are going to call last week’s U.S. Steer hide prices steady. There were reports that both the Native and Branded Heifer hide values jumped up a couple of bucks, but that just may have been a case of lack of production on the lighter end of the fed slaughter, as cattle and consequently hides remain historically heavy. U.S. Cow hide trading, like Steer hide, trading was also limited last week. With the contract prices for the Dairy Cow selections remaining unchanged while the much-maligned Plump Branded Cow hides saw an increase in interest allowing sellers to lift their selling prices by about $1.00 per piece. Cattle slaughter numbers in the U.S. was off somewhat from the week before last, but still a few percentage points above the year ago level for the corresponding week. As in the prior week, we are not moving our price quotes for the U.S. Big Packer, seasonal average, Steer hide selections. We are calling the value of the Heavy Native Steer hides to be between $64.00 to $66.00 per hide and the Butt Branded Steer hides to be $61.00 per piece, both plant basis. For the Big Packer seasonal average Heavy Texas Steer hide selection, we are leaving their trading range between $50.00 to $54.00 per piece FOB plant basis.
The Export Sales Report released by the USDA on December 21, 2017 encompassing the seven-day period ending Thursday, December 14th stated that a net 457,800 whole cattle hides, and wet blue equivalents were sold for export during the period. This total is slightly down from the 497,100 pieces reported as sold for export during the previous week.
Federally Inspected Slaughter, (FIS) for the week ending Saturday December 23, 2017, was estimated 612,000 cattle. Year to Date FIS for cattle is an estimated 31,205,000 head which is up 1,611,000 or 5.4 percent from the same period last year.
Well, it may be hard for some of us to imagine, but this is the last week of 2017. Cattle slaughter will naturally be lower this week and next, because both will be holiday shortened weeks. We do not expect much if any change in U.S. hide prices with what we expect to be a lack of activity in the market. It is said that weekly U.S. cattle slaughter numbers may be slightly lower than recent levels at the beginning of 2018. That is expected to change as we move toward the spring. The reduction, due to the increased number of cattle on feed is the result of large placements of cattle in feed yards this past fall. There will be no market report next week due to the NEW YEARS HOLIDAY on Monday January 1, 2018.
Sports Quote
“I don’t know. I only played there for nine years.”
Walt Garrison, Dallas Cowboys fullback when asked if Tom Landry ever smiles
