US Perspective - 06.05.08
06/05/2008
The Jacobsen Commentary and Market Opinion—06.05.08
Courtesy of www.thejacobsen.com
The situation in the United States has not changed much from our last report as sellers—buoyed by their recent success and some better than expected sales during the month of April—appeared in no hurry to chase the lower ideas of buyers last week, which resulted in a rather lacklustre week of trading.
For the most part the few hides that did exchange hands last week did so at steady levels as we heard from several reliable sources that some producers were walking away from business that was only fifty cents away from their full asking prices.
Trading levels last week were quoting HNS ranging from $65-$67.50 depending on how heavy and what part of the country you were in, while HTS for the most part traded at levels of $66.50, with a few isolated reports of as high as $67. Meanwhile, BS changed hands at levels of $65 and $66 as well. BBS were believed to have brought levels as high as $66, while heifers, which are becoming a bit heavier in the slaughter mix, were reported to have sold at $57.50 for Brands and $60.00 for Natives.
The situation on cows was much the same as big packer hides. Sellers who enjoy a decent sold forward position appeared in no hurry to consider ideas lower than their last traded levels. In fact we heard of attempts to try and raise prices $1-$2 higher than their last traded levels (strongly resisted by buyers) and by the end of the week all appeared more than happy to trade at their last established levels.
Trading levels last week reflect $57-$58 for HNDC, while HNC checked in at $54-$55, while HBC were worth as much as $45-$46. Meanwhile, Bulls remain in great demand and this allowed producers to eke out some incremental increases as we have heard natives bringing levels as high as $64 this week, while Brands have checked in as high as $58.
Meanwhile, the nation’s slaughter saw its first 700,000 plus head slaughter of 2008 last week as packers, who are making roughly $75 a head, sent 704,000 animals to their deaths last week, with expectations we could see these numbers continue for at least the next several weeks.
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