US Perspective—06.11.18
06/11/2018
www.themaxfieldreport.com
Packers entered last week with offer lists that, for the most part, appeared unchanged with the past couple of weeks, both in terms of the numbers offered and asking prices. Sources shared that there appeared to be increases in the number of Jumbo and Super-Jumbo hides offered, as well as HNS and several different selections of wet blue hides.
We heard a number of packers were struggling to ship their outstanding orders due to the fact the production mix for most packers has turned extremely heavy. Also, sources report that offers of heifer hides have all but disappeared over the past couple of weeks; speculation amongst pundits is that packers are blending their heifers into their steer production in order to ship some of their outstanding sales of regular-weight steer hides.
As to interest last week, the consensus of the trade is that there definitely were more bids to choose from compared to the week prior; however, we are not aware of any members of the trade who were boasting they saw a substantial increase in the number of bids. There were more hides changing hands than the week prior.
As to the price ideas of buyers, many started the week with ideas that were several dollars under asking prices. For the most part, business was concluded at steady to incrementally lower levels on most selections, while the only selection this does not pertain to are HNS, which traded in a wide range depending on the packer and how many loads were being sold.
In the cowhide trade, it was a carbon copy of the week prior, both in terms of selections offered, as well as asking prices. A few of the larger tanners in the Hebei area that do not have any pollution issues started offering voluminous type bids at prices several dollars under the asking prices. We understand that some producers attempted to negotiate with these tanners, as it appeared that they needed sales.
As to trading levels last week, we heard specialty type cowhides traded at levels $2-$3 lower than their last traded levels from about a month ago, while standard cowhide selections appear as if they were able to trade at steady to incrementally lower levels last week.
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