US Perspective - 27.05.08
27/05/2008
MARKET INTELLIGENCE—27.05.08
The Jacobsen Commentary and Market Opinion
Courtesy of www.thejacobsen.com
Hide prices in the US remain unchanged from last week as we see from the US Department of Agriculture export sales report below that producers enjoyed yet another week of decent sales.
In the meantime, the container problem and vessel space issue is showing signs of improving in some parts of the United States; however, there are still parts of the country where it continues to remain difficult to move product.
Meanwhile, interest in cow hides remains decent with both HNDC and HNC reflecting little change from their previous trading levels; however, we are hearing that HBC continue to be difficult to liquidate and that inventories are beginning to mount for a few producers. Interest on Bull hides has slowed slightly and we have seen Bull prices slide $1-$2 over the last ten days to two weeks.
U.S. EXPORT SALES FOR WEEK ENDING 15.5.2008
Wet-Salted Hides and Skins
Net sales of 672,900 pieces were up 44% from the previous week and 26% from the previous four-week average. Whole cattle hide sales of 673,100 pieces were mainly for China (278,700 pieces), South Korea (197,500 pieces), Hong Kong (64,700 pieces), Vietnam (49,300 pieces), and Taiwan (32,300 pieces).
Exports of 566,200 pieces were up 6% from the previous week and 13% from the prior four-week average. Whole cattle hide exports of 556,300 pieces were primary to China (221,200 pieces), South Korea (168,800 pieces), Taiwan (51,300 pieces), Thailand (26,600 pieces), and Hong Kong (24,800 pieces).
Wet-Blue Hides and Skins
Net sales of 79,500 wet blues were down 35% from the previous week and 55% from the prior four-week average.
Increases were mainly for China (43,200 unsplit and 8,600 grain splits), Mexico (14,800 grain splits), Thailand (6,500 unsplit), Italy (4,500 unsplit), and Taiwan (4,200 unsplit).
Exports of 141,700 hides were down 12% from the previous week and 9% from the prior four-week average. The primary destinations were China (37,300 unsplit and 6,300 grain splits), Italy (34,200 unsplit and 3,600 grain splits), Mexico (18,300 grain splits and 2,000 unsplit), South Korea (8,600 unsplit), and Hong Kong (7,400 unsplit).
Net sales reductions of splits totaling 468,700 pounds in weight were for Hong Kong (312,000 pounds) and China (156,600 pounds). Exports of 839,900 pounds were down 51% from the previous week’s marketing-year high and 34% from the prior four-week average. The main destinations were Hong Kong (568,000 pounds), South Korea (135,000 pounds), Taiwan (50,000 pounds), Turkey (43,500 pounds), and China (43,400 pounds).
The nation’s slaughter last week was the largest of the year at 719,000 as packers had retailers wanting to ensure their shelves were adequately stocked for Memorial Day. In addition, beef demand continues to be better than anticipated and this too is encouraging packers to run more volume.
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