US Perspective—13.10.20
Courtesy of The Maxfield Report
www.themaxfieldreport.com
Reports from the big packer trade indicate a fourth consecutive week of lacklustre sales.
According to sources, Chinese tanners returning to their offices late last week did not appear to be in any hurry to buy hides, especially with news that packers were looking for additional price increases.
Packers are quick to claim they were able to conclude business last week at their asking prices, although the widespread consensus of the trade is that volumes sold were limited. There appears to be a growing sentiment that the success of packers in raising prices every week by roughly a dollar is slowing now. Even sellers themselves have admitted that they have had to work much harder to conclude business the past couple of weeks at higher prices.
Sellers of Brazilian wet blue hides have appeared much more confident over the past couple of weeks, and this on the heels of better-than-expected interest last month. This interest allowed producers to liquidate their unsold inventories and they are now insisting they possess strong sold-forward positions. They have been successful raising prices along the way.
In addition, we continue to hear reports that offers of hides from Australian hides remain limited due to harvest levels that have been running at levels roughly 25%-30% lower than levels of a year ago.
