US Perspective - 09.06.08
10/06/2008
The Jacobsen Commentary and Market Opinion
Courtesy of www.thejacobsen.com
Business in the US last week was rather lacklustre; there were not many hides exchanging hands last week. Although trading was limited, packers did not blink an eye when it came to pricing hides. By the end of the week, it appears that the few hides that did exchange hands did so at no worse than steady levels.
Trading levels last week on HNS ranged from $65–$67.50, while HTS checked in ranging from $66.50–$67. Meanwhile we had trading reported on BHS ranging from $64.50–$66, while BBS exchanged hands at $65–$66 and CBS at $63–$64.
The one bright spot for US packers are HNDS; sources are telling us that prices have reached as high as $72 for this selection. In the meantime, heifers are becoming more and more problematic as many of the packers are reported to be carrying larger than normal inventories of this selection and we are hearing that ideas on volume are no better than $57 for HNH and $55 for HBH that have not yet been accepted.
The situation on cows appears a bit more depressed this week as we are hearing reports that even HNDC—which had been fairly easy to sell during the last few weeks—are meeting more resistance this week from buyers. Trading this week is indicating levels anywhere from $57–$58.50 depending on the quality, while producers are finding it difficult to liquidate HNC in volume as trading levels appear about $1 lower this week, with reports around $52.
The problem selection for most producers is HBC, with most sources quoting difficulties in generating any kind of volume interest on this selection. We are hearing there are more than a few producers holding larger than normal stocks of this selection.
Bull hides continue to generate reasonable interest allowing producers to achieve steady levels, while interest on small packer hides appears to have picked up a bit as we have a report of trading as high as $50 this week. Meanwhile, interest on kip skins is better from Europe as it appears that buyers are attempting to cover themselves before their holidays and this is affording slightly better levels there as well.
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