US Perspective—21.03.17
21/03/2017
www.themaxfieldreport.com
Last week in the big packer trade, we saw packers make their best effort to hold prices in line with the past few weeks, opting to leave offer lists unchanged. The week started with a decent number of buyers from several different counties willing to share their price ideas. However, with the substantial majority of buyers formulating price ideas well below the last established trading level and packers unwilling to trade the market lower and countering bids at full asking prices, many buyers withdrew their bids claiming they would try again this week.
Overall, last week was very slow and we would not be surprised if this week’s USDA Export Report reflects it as one of the smallest of the year. Meanwhile, packers insisting that the limited number of hides changing hands last week traded at steady levels. There were plenty of rumours claiming several of the packers were willing to negotiate prices towards the end of last week; however, packers are contradicting these claims.
Elsewhere, it will be interesting to see how much follow-through business producers of wet blue were able to round up last week, on the heels of their largest week of sales for 2017. Even with the large round of sales concluded, the outstanding sales number of wet blue hides is still 35% lower than a year ago, which is why popular opinion of most members of the trade is that there are still a decent number of wet blue for sale.
Interest in the cowhide trade was also lacklustre last week as it appears a combination of limited offers and very high asking prices from producers had the majority of buyers opting to keep to the sidelines. The number of hides changing hands last week likely did not clear producers’ weekly production; however, in terms of prices, sources called the market steady or incrementally higher; while several sources confirmed they are working much harder to conclude business as compared to a few weeks ago.
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