US Perspective—21.11.17
21/11/2017
www.themaxfieldreport.com
Members of the big packer trade report that last week started out with packers buoyed with confidence following a couple of weeks of better-than-expected sales. Many pared their offer lists last week, while opting to raise asking prices on the limited number of hides they chose to offer. Also shipping periods on the hides offered were further out; supporting claims by packers they possess strong sold-forward positions.
In terms of interest, the majority of sources called interest lacklustre, especially when measured against the prior couple of weeks. It is highly unlikely packers liquidated a week’s worth of production last week.
Higher trading levels were achieved for a number of selections such as HNS and BBS. In the meantime, we are aware of packers trading HTS at higher levels, while there were also gains registered for BRS and CBS. We were not able to discover any trading on heifers last week; however, according to USDA reports, it appears the number of heifers in the harvest mix is running above normal levels for the year and will have to see if this results in additional offers of heifers or if packers opt to “bury” these into their steer selections.
Reports from the cowhide trade claim a couple of larger producers at the start of the week were laying claims to enjoying decent sales, resulting in offer lists not as populated as the week prior. They also raised their asking prices. The majority of cowhide producers appeared as if they were not as fortunate and most opted to leave offer lists unchanged with the past several weeks, opting to counter bids as they came in. Harvest levels are running at their highest levels of the year and all of this continues to weigh on the market.
The good news is that producers are hoping a firming big packer market may “seep” over into the cowhide market and allow producers to establish a bottom; however, as of this writing, this has not come to fruition.
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