US Perspective—29.03.16
29/03/2016
www.themaxfieldreport.com
Activity last week in the big packer market played out according to the expectations of the trade. Reports claim that the majority of packers opted not to make their offer lists public, opting to allow those traveling in Asia to offer directly to customers. According to sources, offer lists shared by packers were much less populated than in the past two or three weeks; while some of the packers travelling told customers that they did not have offers at all. In the meantime, we also heard conflicting reports back in the States last week before travelling that some of the packers were being accused of inquiring if some customers would be willing to ship earlier than contracted on some of the packers’ less popular hide selections.
Overall, sales last week were difficult to come by, as packers were not willing to concede their prices, while buyers appeared reluctant to chase the market further, appearing as if they were willing to wait on purchasing in order to view the offer lists of all those who were travelling. As a result, the sentiment of the trade is that it is unlikely a week’s worth of production was sold last week. Meanwhile, the surprise last week was the large sales on the USDA Export Report, which reflected the largest of the year and we are not aware of too many pundits, including your editor, that were expecting such a large number.
Popular opinion in the trade is that large sales were attributed to traders liquidating their long positions, as well as some carry-over from sales late the week prior, as we were not aware of any of the producers who were boasting a large round of business. As to sales reported since the close of business on Thursday (we were closed on Friday as markets were all closed and we travelled on Monday), were led by sales on BBS at $73. Meanwhile, other trading shared had CBS at $60, while sales on HNS checked in at $74, while sales on regular-weight HTS reflect $66. The only other trading was an isolated report on HNDC at $58.
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