US Perspective—03.12.19
03/12/2019
www.themaxfieldreport.com
Last week was a short week of trading for most, owing to the Thanksgiving Holiday on Thursday, coupled with the fact, that a sizeable majority of the US trade also took Friday off as well to enjoy a long weekend with family.
The week started with packers in no hurry to offer anything earlier than normal, and when offer lists were released, most appeared as if they were a duplication of those of the past few weeks. The only noticeable changes were an increase in the volume of Jumbo steer on offer (as many as half of the hides offered on some lists), and shipping times. It appears packers enjoy decent sold-forward positions as there were few, if any, selections available for December shipment. It appears there are still tanners looking for December shipment to try and ensure they receive the last of the summer hides still in warehouses.
As to asking prices, as mentioned above, packers were content to leave them unchanged. It is widely speculated that packers’ immediate goal is to keep product moving in light of expectations that larger-than-normal harvest levels will continue.
In the cowhide trade, there were reports that a number of producers removed some selections from their offer lists last week. The other notable change we saw on offers last week was the lack of selections available for December shipment.
We have entered the final month of 2019 and expectations of the trade is that we should see some decent activity from tanners in the next two or three months, only affected by Christmas holidays in the western world and the Lunar New Year celebrations in Asia which comes early this year (January 25).
It appears that US big packer hides prices have stabilised over the course of the past month, while prices of cowhides, after reaching lows many in the trade had never seen, appear as if they have recovered and have now stabilised as well.
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