US Perspective—02.08.16
02/08/2016
They are laying claims to selling roughly $1-$2 lower than the previous week, while we are hearing reports from buyers that some selections traded as much as $2-$3 and even more lower than the previous week, depending on the packer and the selection.
We continue to hear reports of sizeable quantities of wet-blue for sale, especially HTS, while sources also claim there were still a number of Jumbo and Super-Jumbo BRS and HTS for sale as the week came to a close.
Elsewhere, reports from overseas claim that there were obviously more buyers in the market this week; packers willingness to negotiate prices drew the attention of more tanners.
Some tanners have been slow in opening timely letters of credit and this, coupled with slaughter levels that continue to run 10%-11% higher than a year ago, has many packers looking for earlier shipment than contracted on a number of selections.
Meanwhile, sources in Asia are sharing that leather orders for tanners appear somewhat mixed, especially for side-leather tanners. We have heard reports that some of the large shoe-upper tanners appear to be enjoying decent business, while other shoe-upper tanners continue to report their business is lower than a year ago.
Most automotive tanners still appear busy, while there are some rumblings about a few tanners who have seen a slight decrease in business, with speculation this is some of the fallout from the Brexit vote. Worth noting, Ford Motor Company has released its six months earnings with warnings that they expect sales to slow the second half of this year, with the reason for the pessimistic outlook attributed to Brexit.
We are in a supply-driven market; there simply appear to be too many people attempting to sell hides and far too many producers appearing as if they are out of position at this time in order to allow sellers to find a bottom to the market.
Share this story:
