US Perspective - 27.01.15
27/01/2015
www.themaxfieldreport.com
Offers last week from packers were mixed, as some opted to publish lists while others did not. According to sources, asking prices last week were anywhere from $1-$3 higher depending on the selection and the origin.
Those buyers who did express an interest started the week with ideas under the last established trading levels and quickly discovered packers had no interest in entertaining their ideas. Sources report some buyers did improve their ideas to steady levels, while only a handful of buyers appeared willing to go along with the price ideas of packers.
At the end of the day, sales last week likely will fall short of the slaughter.
We are of the opinion that the market is no worse than steady, although we know a few members of the trade may disagree with this assessment. As far as trading levels last week, sources claim BBS sold at $112-$113 delivered and appeared the easiest selection to move with demand exceeding the number of loads offered. Sales of HTS remain at levels of $105 delivered and BS from $102-$104 delivered. Elsewhere, Jumbo and Super-Jumbo steers sold in a range of $114-$120 delivered depending on weight average and selection.
Reports from the cowhide trade appeared a bit more optimistic towards the end of the week with a number of sources leaning towards the opinion that this market has finally turned around. Last week sources report the selections offered by producers appeared limited and price ideas on these hides $1-$2 higher than their last traded levels.
We are also hearing of tanners who would be willing to pay a premium over the last established trading level if they could get prompt shipment. A problem associated with the west coast is that a number of containers have letters of credit that are going to expire, as they are not able to be loaded. Many of these letters of credit are for prices that are well above today’s fair-market value.
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