Trading in the U.S. hide market started off slowly last week. Packer and dealer offering lists were smaller than the previous week or, in a few cases, nonexistent. The early week Steer hide sales were done at pretty much steady money. However, as the week progressed Steer hide suppliers were able to obtain increases of $1.00 to $1.50 per hide depending on the selection. It should be noted that, as Steer prices advanced, demand declined, and from our view point it appeared that far fewer U.S. Steer hides were traded than the prior two weeks. Those two weeks allowed suppliers to enter last week with conformable sold ahead positions. It also allowed many tanners who had participated in the market those two weeks to enter last week with comfortable raw material ownership positions. Thus, a reduced number of Steer hide sales was seen last week. However, those tanners who felt the need to buy something had to pay last week’s higher prices. Values of some of the U.S. Cow hide selections also moved a little higher last week, but none of those were of the plump variety, which found little if any buyer interest. The U.S. Branded Cow hide value continues to be affected by the problems in the Hebei tanning area in China and low priced Wet Blue and crust coming out of South America. The Export Sales Report released last Thursday for sales made the prior week were over 600,000 for the second week in a row. Interesting sidebar to the report was that over 90 percent of the reported sales were to China or Korea. U.S. cattle slaughter did not miss a beat last week coming in again at well over 600,000 head. Reports from Asia regarding finished leather business are that it is better but still running below a year ago levels. Because of the activity in the market last week, we are moving up what we consider the FOB plant values of the seasonal average weight U.S. Big Packer Steer hides. We are calling the Heavy Native Steer hide price $63.00 FOB. And, we are moving the Butt Branded Steer hide price up to between $58.00 and $59.00 per hide. As for the Heavy Texas Steer hides, we quote their value to be $49.00 to $51.00 per hide.
The Export Sales Report released by the USDA on November 15, 2017 for the seven-day period ending Thursday, November 9th showed that 665,600 whole cattle hides, and wet blue equivalents were sold for export during those 7 days. That total, though large, is down from the prior week’s 808,600 pieces sold.
Federally Inspected Slaughter, (FIS) for the week ending Saturday November 18, 2017, was estimated 639,000 cattle, up from the estimated 623,000 head processed the prior week. Year to Date FIS for cattle is 28,103,289 head this number is up 5.5 percent from the corresponding period last year.
This is a holiday week here in the U.S.A., as we will be celebrating our national “Thanksgiving Day” holiday this Thursday. With many taking Friday off, this holiday will be stretched into a four-day weekend for many suppliers in the U.S. So, we look for this week to be an abbreviated one as far as business is concerned. We expect U.S. Steer hide suppliers to be looking for higher prices again this week. If a tanner feels the need to buy some U.S. Steer hides this week, we are guessing he will need to pay more money to secure them. Same goes for U.S. Dairy Cow hides as well. We are not as sure as to what will happen with U.S. Branded Cow hide prices this week, but we can’t imagine their value dropping much further. Hope you all have a wonderful week.
Golf Quotes
“It will seat 6 fishermen or 12 lovers”
– Jack Nicklaus, on his 38-foot boat
“Most people play like Magellan. They’re all over the world.”
– Bob Toski
