US Perspective - 20.10.20
Courtesy of The Maxfield Report
www.themaxfieldreport.com
Offer lists appeared a bit more populated last week, both in terms of the number of selections, as well as the number of loads offered. Packers have seen four weeks of underwhelming sales but this did not deter most from raising their asking prices again.
Sources share that the number of bids last week easily exceeded those of the past two or three weeks. The common theme was that most prospective buyers were looking to test the asking prices of packers and bidding $1-$2 under the official asking prices of packers, while packers countered at full asking prices.
Reports from members of the cowhide trade suggest their offer lists were slightly more populated last week, with most producers adding a couple of selections to their lists, as well as increasing load-counts available for sale. The common theme among the various offer lists is that sellers remain bullish, resulting in increasing asking prices by roughly a dollar across the board.
As to harvest levels, we look for large number to continue as packers’ margins are still well north of $200 per head as demand for box beef continues to exceed the expectations of most pundits.
There are interesting reports that some Korean tanners entered the market late last week and if this continues into this week, it could be enough motivation for sellers to adhere to their asking prices again this week.
