Demand for U.S. Steer hides remained strong enough last week to allow suppliers to move the prices for these selections up $1.00 per piece. Also, producers of Plump Cow hides, both Native and Branded selections, were either able to move their sale prices $1.00 higher or at least keep them equal to their last traded levels. This result on Plump Cow hides selections may have been attributed more to a lack of supply rather than demand. During the week we continued to hear that, other than continued good business being reported for the automobile upholstery guys, tanner’s leather sales remaining lackluster. There were enough tanners, other than the auto upholstery people, in the market for U.S. Steer hides to keep the market on the firm side. Some in the trade said that the orders from these “other” tanners were hand to mouth, and limited, but it allowed Plump hide suppliers to sell what they wished. During the week, seasonal average Big Packer Steer hides were reported to have sold at $73.00 to $ 74.00 FOB plant, while seasonal average Big Packer equivalent Butt Br. Steer hides were reportedly traded at prices that ranged between $70.00 to $72.00 FOB plant basis. We calculate that those price levels are up $1.00 from the prior week’s level. Sales of seasonal average weight Heavy Texas Steer hides reported during last week ranged from $64.00 to $66.00 per piece FOB plant basis. That price range would indicate that the Heavy Texas Steer hide values were also up $1.00 for the week. As mentioned above, Plump Cow hide sales made last week were done at prices that were steady to a little higher than the week before last. There were no indications that any Cow hides were sold at a price that was up more than $1.00 from its previous level. The Spready (Dairy) Cow hides that were sold last week were done at prices that were steady on the best origins to down $1.00 or so on some of the less desirable origins.
The Export Sales Report released by the USDA on March 10, 2016 covering sales made during the week ending March 3, 2016 showed net sales for export of 520,900 cattle hides and wet blue equivalents. This quantity is down a little from the previous week’s export sales number of 569,500 pieces. The largest buyer was again China which booked 233,900 pieces. Korea was the second biggest buyer with purchases of 117,100 hides and wet blue equivalents.
The Federally Inspected Slaughter (FIS) for the week ending Saturday March 12, 2016 was estimated to be 536,000 cattle, which is up a little from the prior week’s knock of 533,000 head. For the same week last year the FIS was 528,000 animals. The Year-to-date estimated cattle slaughter is down 0.7 percent from last year’s number.
We expect that U.S. hide suppliers will, for the fourth week in a row, be asking higher prices for their Steer hides and plump Cow hide selections. It seems that U.S. Steer hide prices have moved up about $1.00 per week since the Chinese tanners returned to work after their New Year holidays. With this being the case, hide producers and traders would be considered lazy if they didn’t try to move the market higher this week. However, with the Asian Pacific Leather Fair on the horizon, one has to expect that a good number of the Asian tanners may think it better to hold off buying raw material until they can meet suppliers face to face, either at the Hong Kong show or when sellers visit their factories prior to the show. We don’t expect much change on the supply side from the U.S. as the weekly slaughter number is expected to remain at current levels. However, slaughter numbers in Canada and Australia remain low, and it was reported last week that Brazilian packers are reducing their productions for the time being. As for our point of view, we don’t see U.S. hide prices moving much this week. Steer hide sellers may get another dollar out the tanners, but we feel that any increase achieved will be limited to $1.00 per piece maximum. For U.S. Cow hide sellers we think steady would be good for suppliers. Let’s see what the week brings.
Golf One-Liners
It seems the older I get, the longer the holes and the smaller the clubs get.
I’m such a bad golfer, that if I grew tomatoes they’d come up sliced.
