US Perspective—13.06.17
13/06/2017
www.themaxfieldreport.com
Reports from members of the big packer trade claim interest slowed considerably towards the end of last week. Overall, the sentiment amongst those selling hides is that a combination of fewer offers and firmer postures by packers is to blame. The sizeable majority of buyers opted not to improve their ideas, instead withdrawing their bids, telling sellers they would prefer to wait until this week.
Packers had success trading at steady levels, while there appear to be a few isolated instances where packers were able to achieve slightly higher trading levels. It appears sales at higher levels were limited both in the number of buyers willing to pay such prices, as well as the number of hides sold.
As to the number of hides changing hands last week, it appears that pundits are leaning towards the opinion there were not nearly as many hides sold. In fact, several members of the trade appear as if they are questioning whether packers were able to sell all of their production.
Elsewhere, reports from members of the trade in Asia claim tanners begrudgingly acknowledge that prices in general appear as if they have had a soft rebound; however, many tanners insist that this is only a temporary situation.
In other news, reliable sources in Asia are reporting that leather buyers are pushing tanners to consider lower leather prices on new leather orders, pointing to a decline in hide prices since the APLF exhibition in Hong Kong at the end of March. Sources are reporting that orders for shoe-upper tanners appear mixed, as some tanners claim they are disappointed with their order books, while others report orders are in line with a year ago. Meanwhile, furniture business appears decent, while automotive tanners are starting to exhibit signs of slowing down, due to a decline in auto sales.
Reports from the cowhide trade claim interest last week was not nearly as brisk as in the past several weeks. Several sources reported they did not see many bids. Some sources report they had bids at levels well below the last reported trading levels and opted not to pursue. Some sellers claim that when countering bids at levels slightly lower, prices countered at full asking price making it possible to conclude only a limited amount of business this week.
Demand for cowhides has been decent the past several weeks, allowing numerous producers to liquidate the majority of their unsold inventories and achieve prices a couple of dollars higher than recent trading levels.
Share this story:
