US Perspective—16.11.10
16/11/2010
Courtesy of www.thejacobsen.com
The market ended the week on a fairly positive note with prices steady and sales volumes adequate. A couple of people commented that there was wide interest and they had a good week of sales. One supplier indicated they were in the best forward-sold position at these price ranges?ever. Prices for packer steer hides C&F to China traded in a range between $81 to $82.50, depending on source and selection.
US export sales and shipments for week ending November 4 (week 44) continue to show strength for combined hides and wet blue. For the week, hide and blue sales totalled 685,000 with wet blue significantly higher than normal at 275,900 compared to this year’s average weekly 139,000. Over half the week’s blue sales were scheduled for 2011 delivery to Italy. Italy was also the primary destination for wet blue sales in last week’s USDA report for week ending October 28 with wet blue of 128,800 pieces.
Shipments for week 44 were 689,700, which is significantly higher than the year-to-date weekly average of 601,300. This year’s year-to-date slaughter is 28.499 million or 647,700 average weekly. Domestic consumption of hides is estimated to be around 35,000 weekly and if you add this to the average export numbers, it leaves unaccounted approximately 500,000 or 11,000 weekly.
In the following three years-to-date chart of slaughter, sales, and shipments, sales in 2010 are trailing shipments by slightly over 890,000. In eight of the past nine weeks, sales have exceeded this year’s average weekly value of 580,000.
The 2010 numbers for slaughter, sales and shipments through week 44 are 28,499,000; 25,564,695 and 26,457,500. The numbers for the same week in 2009 were 27,961,000; 26,927,700 and 27,816,200. Those for 2008 were 28,914,000; 26,630,000 and 27,855,600.
A few suppliers report they are beginning to do business with steer hides?one in good quantity. Cow business is mixed with one supplier calling the cow market, “very good,” while other people are experiencing average interest.
A decent number of bids were reported for BBS in the range $81 to $82 C&F China, but there are some that have been as low as $78-$79. The trigger was $81 for packer BBS, which were sold between $81 and $81.50. Some business was done on packer HNS between $82 and $82.50 C&F. Processor business was reported below these levels.
Urner Barry also reports that demand for beef remains somewhat lacklustre heading towards the Thanksgiving holiday (November 25), prompting some processors to remain conservative with their production hours. Supporting this premise, one packer commented today that contrary to last year, they are planning to be down on the Saturday after Thanksgiving.
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