US Perspective – 03.11.20
Courtesy of The Maxfield Report
www.themaxfieldreport.com
Last week in the big packer trade many packers refrained from offering any wet-salted hides. Those who did offer hides last week were reported to have raised asking prices by another dollar over their last traded levels. This kept most buyers on the sidelines. Prospective buyers quickly discovered that packers had absolutely zero interest in negotiating prices.
Producers of wet blue hides continue to appear as if they have more hides for sale than they are willing to admit. We heard claims of some producers aggressively seeking high-volume business from some of their preferred customers. According to sources, there was some sizeable business concluded in the last week to ten days, accompanied by reports that buyers able to consider volume and prompt shipment were able to negotiate prices. There are rumours of sales at levels anywhere from $5-$10 under the asking prices of producers.
Reports from the cowhide trade suggest a marked improvement in the number of bids last week. Producers continue to lay claims of strong sold-forward positions and are reluctant to negotiate prices with perspective buyers.
We should at least see a few more hides offered this week. As to the asking prices, packers remain buoyed by the recent round of business the past few weeks and will have no problem raising asking prices this week.
