Steady as you go! That would be the only way to describe U.S. Steer Hide Market last week, as prices for all of the Steer hide selections were unchanged. Of course, there were some sales reported that were up or down a little from previous levels, but they were exceptions to the rule. For example some seasonal average weight Heavy Texas Steer hides were reported to have sold up $1.00 per hide. So, let’s call last week’s trading levels for seasonal average Big Packer Heavy Native Steer hides at $73.00 to $74.00, and the trading range for the seasonal average Big Packer Butt Branded Steer hides at $71.00 to $72.00, both ranges FOB plant basis. As for the trading range on the Big Packer seasonal average Heavy Texas Steer hide selection, we are moving it up from $64.00 to $68.00 per piece FOB plant. How many hides did the Steer hide suppliers move last week? From what we could tell, Steer hide sellers were able to sell pretty much what they had wanted to move last week, a week’s production. Last week cattle slaughter number in the U.S. was about what was expected, with just under 600,000 head being processed. Beef packers, who process Fat cattle, were reported to have been able to increase their per head profit margin up a notch last week. Producers and sellers of U.S. Cow hides did not fair as well as their Steer hide selling brethren last week. Both Branded Cow hides and Dairy Cow hides were also reported to have sold, on an average, down $1.00 per piece last week. Cow hide tanners in Asia continued to complain that their leather order backlogs are small, that their lime splits are almost worthless, and their cash flows stink. From all reports, there was a fair amount of U.S. Cow hides sold last week, Heavy Native Cow hides held their own, while Plump Branded Cow hide values gave ground. Dairy Cow hides were a mixed bag as some of the better origin selections remained steady, while other productions moved down $1.00 or so.
The Export Sales Report released by the USDA on May 19, 2016 covering the week ending May 5, 2016 showed that only 567,000 hides and wet blue was sold for export during that week. This number is up over 30 percent from the previous week’s sales number of 434,800 pieces. China took over 80 percent of the raw hides sold and over 48 percent of the wet blues sold during the week ending May 19th.
The Federally Inspected Slaughter (FIS) for the week ending Saturday May 21, 2016 was estimated to be 587,000 cattle, down from the prior week’s 601,000 head and up from the 570,725 head harvested during the same week last year. The year-to-date FIS cattle slaughter is estimated to be 11,210,000 head which is up 193,000 animals for the same period last year.
We anticipate that U.S. Steer hide suppliers will be asking higher prices this week for any selections they offer. In addition, we expect any increases in sale prices will be hard for sellers to obtain. Steady money for Steer hides is more in line with our thinking. We look for the FIS to continue running around the 600,000 head number this week, as it is the last full work week before our national holiday, Memorial Day, next monday May 30. The U.S. Cow hide values may be more up in the air than Steer hide prices, and depending more on supplier’s sold positions than anything else. Those Cow hide sellers who need to sell may be inclined to accept lower prices while other sold ahead suppliers will be turning down lower bids. Please remember that our guesses regarding selling prices for any selection, are almost 50 percent correct.
Golf Quote
“Your game is a beast, and either you can control the beast or the beast can control you. As you get more experience competing, you develop better ways of coping with your feeling. If I’m a little too charged up. I take a long breath.”
-Seve Ballesteros
