US Perspective–05.04.11
05/04/2011
Courtesy of www.thejacobsen.com
The tone in the hide market this week has been greatly influenced by the large number of people away for the Asia Pacific Leather Fair. Besides the expected lag in communications, the face-to-face contact between buyers and sellers provided both with the opportunity to express their positions, which they did.
The outcome, however, has been mixed with varying reports as to the quantity of hides sold and prices. The general impression is demand remains good for all selections of US hides, and the market remains firm. There is no argument that most tanners are busy, leather business has been good, and they are struggling with hide prices. Tanners still need to buy for May or June production but suppliers are holding firm at $95–$96, which is too high for buyers’ appetites. Some producers feel that at a price $2 less than that amount, buyers would jump in.
Last week’s US export sales for week ending March 24 were under the year’s trend for the fourth consecutive week, with 470,200 whole hides and wet blue sales. Through week 12, the average weekly combined sales are 579,320. Sales this year are ahead of the same period last year by 5% but the gap has narrowed considerably in the past four weeks.
Combined shipments for the week were 576,800?also lower than the year’s trend of 598,591. Over the past four weeks, the pattern of shipments has not been consistent with numbers bouncing up and down, similar to the rest of the year. For comparison, slaughter last week was 632,000. Wet blue sales last week were 88,500 with Mexico the biggest destination receiving 34,600 split grains and full substance pieces. Year to date, average weekly wet blue sales are 124,570 compared to 137,425 at the same time last year.
The three-year comparison of slaughter with wet blue and hide sales and shipments through week 12 are as follows. For 2009: 7,409,319; 7,042,800 and 6,800,300. For 2010: 7,594,278; 6,620,395 and 6,779,400. For 2011: 7,666,282; 6,951,864 and 7,183,100.
Share this story:
