US Perspective - 06.08.19
06/08/2019
www.themaxfieldreport.com
Reports from the big packer trade report interest this week was uneventful for the most part. The few bids some had went away once President Trump announced the US will assess additional tariffs on China, effective September 1. This sent many buyers to the sidelines, opting to wait until next week to assess how these new tariffs will impact the market.
Overall, as to business concluded last week, there were limited offers at slightly higher asking prices, leading to the opinion that there were not as many bids last week as the week before. The limited number of hides changing hands last week did so at no worse than steady levels with the week before, while there were a few isolated selections achieving slightly higher trading levels.
As to the number of hides sold, it is highly unlikely that we saw packers clear their production last week, as harvest levels continue near the 650,000 head level. Despite the lack of sales, few think there will be more offers next week.
Members of the trade overseas claim the majority of the US big packers have enjoyed some decent sales over the course of the past month. There appeared to be an increase in the number of heifers offered as there has been a noticeable increase of females in the harvest mix.
Tanners continue to complain about leather orders, with some tanners insisting orders are down by as much as 25%-30% versus a year ago. However, contradicting these claims are reports by sellers that the vast majority of tanners who have participated in the market over the course of the past six-to-eight weeks appear as if they are very anxious to take delivery of the hides they have purchased. Stories of tanners asking to delay shipment or being slow to open letters of credit have all but disappeared.
This is leading to thoughts by pundits that perhaps leather orders that require big packer cattle hides are better than tanners are sharing. Prices of US big packer hides have risen by between 25% and 40% over the course of the past six weeks.
We are now hearing confirmation that some of the large furniture upholstery tanners are admitting to booking some sizeable volumes of US big packer hides in the last four-to-six weeks.
Elsewhere, sources share that leather orders for decent-quality leather appear to be good for many tanners, while orders for lower-quality type leather are not measuring up to levels of a year ago.
Share this story:
