US Perspective—04.12.18
04/12/2018
www.themaxfieldreport.com
Packers entered last week still in possession of fairly large offer-lists. This was somewhat surprising considering popular opinion of the trade is that there were a decent number of hides changing hands in the second half of the week prior.
Offer-lists from packers continued to be dominated with numerous offers of various Jumbo and Super-Jumbo steer hides, while a slowdown in automotive sales the last two or three months has slowed requirements for most automotive tanners, resulting in more than ample offers of HNS and BBS.
In addition, there continue to be numerous selections of wet blue hides for sale as well, as demand for wet blue hides has dwindled substantially in the past couple of months.
Another interesting development on offer-lists last week was that most of the hides offered were listed for December shipment. This is contradictory to four or six weeks ago, when packers were telling the trade that they were “sold out” through the end of 2018 and that any new sales concluded would have to be for shipment in 2019.
As to asking prices last week, one of the packers who made a sizeable adjustment to offer-lists the previous week, made further adjustments in an effort to bring asking prices back in line with actual trading levels. Asking prices started last week at levels down $1-$2 from the week prior, with members of the trade acknowledging the lower asking prices followed trading the week prior that occurred at lower levels.
Reports from the cowhide trade claim that offer-lists last week remained heavily populated, as most producers were reported to have a full complement of selections. Again, the vast majority of hides offered appeared as if they were available for December shipment. The majority of other producers lowered their asking prices by $1.
Current trading levels on some lower-quality cowhide selections are bordering on the hide having no value. Several sources have shared that current price ideas from buyers on certain selections will barely cover the freight and cost to process the hides and this is leading to thoughts there is a good possibility we will see more hides rendered very soon.
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