US Perspective - 29.09.20
Courtesy of The Maxfield Report
www.themaxfieldreport.com
Packers remain in control of the market. In terms of asking prices, most were reported to be asking anywhere from a dollar to two dollars higher last week than the week prior. One of the packers raised asking prices by as much as $3 to $5, depending on the selection.
This slowed interest noticeably last week. Buyers who were looking to negotiate prices, found out quickly that packers had no patience for lower prices. The number of hides changing hands is unlikely to be as many as the week prior. The business concluded appears to have all taken place at higher levels than the week prior.
Reports from members of the cowhide trade claim producers entered last week touting strong sold-forward positions. As a result, offer lists seen last week remained limited, with producers seeking higher prices than the week prior. Again, sellers had no interest in negotiating prices.
It was a fairly quiet week; it is clear that the few hides that were sold, traded at the full asking prices of producers.
We will see large numbers continue as we move into October. Hide producers continue to possess strong sold-forward positions and there are public holidays in many countries in Asia. In our opinion it should be a quiet week of sales this week.
