US Perspective - 7.8.14
Courtesy of The Maxfield Report
www.themaxfieldreport.com
Please note: The Maxfield Report will take its annual summer publishing break from August 8 through August 16.
THE COMMENTARY
Members of the big packer trade report there is no real change, as packers continue to convey a very firm message in regards to the tone of the market. In the meantime, we have heard of attempts from buyers to bid at levels slightly under the last reported trading levels; however, to no avail as packers appear unwilling to yield their price ideas.
In the meantime, sources in Asia report that tanners are slowly coming to the realisation we are in a supply-driven market and thoughts that US hide prices would soften prior to the ACLE are waning. However, worth noting, we have heard from sources that in private, many tanners are hopeful that prices will remain firm, as this will provide them more ammunition in their quest to raise leather.
Meanwhile, sources report interest as mixed. We hear that larger tanners continue to remain somewhat active in the market, while the majority of medium to smaller sized tanners continue buying only hand-to-mouth. In fact, we have heard comments that some tanners have stated that they are going to delay making any decisions in regards to purchasing until they get a chance to greet their numerous visitors they will see later this month; in hopes, some will bring them a gift of more affordable hide prices.
As to sales, we are not getting the impression that there were as many bids to consider today as yesterday. Sales we can share are BBS selling at levels of $110, while sales on Jumbo BS reflect $114. Meanwhile, we have sales on CBS reflect slightly higher levels to $106 and HBH at $89. We also have sales of regular weight packer HTS reflecting a range of $106-$108 depending on the weight average, while sales on HNS also reflect slightly higher levels with quotes at $112.
Reports from members of the cowhide trade are in line with the rest of this week, as it appears efforts to sell HBC and HNC continue to meet a fair amount of resistance due to the problems in northern China, while producers continue to make claims that they are seeing better than expected interest on HNDC. The good news for producers is that the number of cows coming to slaughter remains at levels close to 20% under levels of a year ago and why producers so far have been able to defend against effort to push HBC / HNC prices lower.
In regards to sales, we are only aware of some isolated interest today, as we have processors laying claims to selling HTS at levels of $105, while we have sales on HNC reflecting steady levels at $77. The only other trades is a couple of sales on HBC with sources reflecting material in the north traded at $67, while sales in the south were registered at $64.50.
