US perspective — 14.03.08
17/03/2008
MARKET INTELLIGENCE
The Jacobsen Commentary and Market Opinion
Courtesy of www.thejacobsen.com
Sales last week of big packer’s hides totaled 642,700 hides and this coupled with sales of 158,100 wet-blue hides resulted in packers enjoying their largest sales week of the year.
This strong week of sales allowed packers to ground the market and there were even a few isolated reports of some trading on limited volumes at slightly higher levels this week. As far as the trading levels we have heard, we can attest to HNS trading at levels of $65 up to a few at $66, while the majority of HTS traded at $64.50 last week with reports that $65 cannot buy them this week. As far as BS, we had reports of some volume trading last week at levels of $62-$63, while we hear attempts to buy at these levels this week are failing and overall, most would agree that there have not been a lot of hides exchanging hands this week.
With regard to cow hides, it also appears that producers enjoyed decent sales last week; looks as if a decent clean-up did take place. Producers in turn have attempted to lobby for some incremental increases this week; however, for the most part buyers have been reluctant to follow. As far as trading levels last week, we are hearing that HNDC were able to bring levels of around $56-$57. HNC exchanged hands at $52-$53, while HBC were selling at around $43-$44. Interest on kips skins is a touch better with trades this week at $47, while Bulls in small packers remain in good demand and appear as if they can bring roughly $1 more.
The nation’s slaughter continues to move slowly higher as we inch closer to Easter, while winter finally appears to be releasing its grip on the country. Many parts of the country are now welcoming more spring-like temperatures.
Packers have been making a little bit of money the past few weeks (roughly $5-$10 per head) and with available cattle supplies at the second highest level on record, it is expected that packers will more than likely slaughter more cattle than normal moving forward for the next several weeks.
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