US Perspective - 29.04.08
29/04/2008
The Jacobsen Commentary and Market Opinion
Courtesy of www.thejacobsen.com
The US market showed no real signs of any excitement last week as producers, buoyed by a period of strong sales the past 4–6 weeks, appeared to have no interest in the lower ideas of buyers.
In the meantime, attempts to push prices higher by producers were met with stern resistance by potential buyers and by the time the week came to a close few hides were exchanging hands, supported by today’s export sales report reflecting that the US failed to sell 400,000 wet-salted hides last week.
The few big packer hides that have exchanged hands this past week have done so at no worse than steady levels; however, we are hearing that packers appeared to be a bit more patient with ideas that are falling below their asking prices.
In the meantime, the nation’s slaughter is quickly moving higher and it would not be surprising if we did not challenge the 700,000-head level this week.
With South Korea opening its borders next month and beef demand better than many had expected—coupled with reports that we have more than ample supplies of market ready cattle—could mean we could be in for a larger than expected slaughter moving forward.
As it pertains to cow hides, demand remains decent allowing producers to hold prices steady, while we are hearing that HBC, which had been a bit more difficult to sell, might has found favour with a few buyers in the last week or ten days.
Meanwhile, interest on bull hides remains excellent and this has producers inching prices higher; we have heard interest on natives as high as $74 delivered to China, while kips skins prices appear improved and small packers are fully steady.
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