US Perspective—01.09.20
Courtesy of The Maxfield Report
www.themaxfieldreport.com
Last week in the big packer trade saw offers lists slightly less populated than the week prior. Packers raised asking prices once again, with most selections reflecting increases of roughly a dollar compared to the week prior.
A combination of reduced offers and higher asking prices resulted in fewer bids last week for packers to consider. As a result, last week was not a particularly busy week of sales for most. Packers turned away unsolicited bids, while countering bids on items offered at full asking prices. The limited number of hides sold last week sold at the asking prices of packers.
We have written about the tremendous number of wet blue hides sold a couple of weeks ago. The consensus of most pundits is that this business was concluded at levels well below the current trading levels. It is widely agreed that wet blue producers were not proud of the prices obtained but it allowed producers to liquidate unsold inventories of wet blue hides, affording them a bit of breathing room.
It is widely speculated that there is still a sizeable overhang of unsold wet blue hides in inventory. Producers likely need at least a couple more huge weeks of sales in order to get themselves out from underneath their unsold inventory.
Reports from members of the cowhide trade claim offer lists from producers last week saw a handful of selections removed and this was coupled with efforts by producers to raise asking prices by roughly a dollar across the board. According to various sources, it appears the reduced offers, coupled with higher asking prices detoured interest last week and the number of bids was noticeably less than in the past few weeks.
