US Perspective—08.01.13
08/01/2013
www.themaxfieldreport.com
Reports from members of the big packer trade share that there were a few buyers in the market looking for hides but that the start to the new year was very sluggish. Worth noting is that we heard that one of the packers was laying claims to having bids on regular weight HTS as high as $100 delivered at the end of the first week of the year; however, it appears that this might be a bit exaggerated considering reports from multiple other sources claimed their best bids for similar product was no better than $99-$99.50 delivered.
In the meantime, we have heard that ideas on CBS at $97 delivered failed to draw the attention of packers, while sources share that interest on HNDS (Heavy Native Dairy Steers) was in the range of $113-$114 delivered with premium product selling for as much as $120 delivered. Also worth noting are comments from one member of the trade who shared that he bid one of the packers $92.50 FOB for some regular weight HTS; however, the packer after acknowledging it was a decent price, declined to sell the product claiming he was sold too far forward.
Overall, the collective opinions of the trade is that it is unlikely that packers sold a week’s worth of production, while the consensus of the trade is that prices this week were no worse than steady, if not incrementally higher on a handful of selections as buyers still appear as if they do not have enough hides.
Trading reported included sales of lighter-weight BBS at $93, while sales of heavier-weight product reflected similar levels. We also have packers laying claims to moving regular weight BS at levels 50 cents higher than their last trade at $91.50, while we have a sale on Super-Jumbo HNS reflecting levels noticeably higher with a sale at $102.50. The only other trading was a couple of sales on HTS as we have packers laying claims to selling regular-weight production at $92, while sales on Jumbo reflect levels of $100.
The market remains on a firm note. What is worth noting in our humble opinion is that we are hearing a few more members of the trade claiming that they are starting to believe that prices may be hovering towards the top-end of the trading range; however, we are unsure if this is wishful thinking or based on logic.
We understand there are more than a few loads of super-jumbo steer hides offered by some of the packers, while we also hear there once again appear to be some wet blue hides for sale. One would think that if the leather business was as good as many sellers are claiming that there would be buyers for these hides even though they are not the preferred hides of tanners.
At the end of the day, sellers continue to enjoy a decent to strong sold-forward position, depending on the seller, and with slaughter levels the last couple of weeks at nominal levels, there is certainly no pressure to sell. We are looking forward to the next couple of weeks, it will be interesting to see if packers forecasts that they will significantly reduce slaughter levels come to fruition. Packers insist they have margins that are “bloody” red and if the slaughter should fall well below normal levels for this time of year, those looking for any kind of a correction in prices later this month may have to wait even longer.
Share this story:
