US Perspective - 17.06.08
17/06/2008
Business in the US last week was once again relatively uneventful, supported by export sales figures reflecting sales of only 563,500 wet blue and salted hides last week.
However, in spite of the lack of sales, packers appeared in no hurry to accept the lower ideas of buyers and by the end of the week, prices barely varied from the last traded levels of the week before, leaving most to call prices unchanged.
Trading levels on HNS reflected prices as high as $67.50, while HTS were not too far behind at $66.50 and BS at $64.50–$66. BBS exchanged hands at $65.50–$66, while CBS checked in at $63–$64. The one bright spot for packers continues to be HNDS which remain easy to sell as we have reports of some trading as high as $72.
Meanwhile, heifers continue to hang over the market as we continue to hear reports of several of the packers attempting to ‘create’ some volume type business with potential buyers. For now, most are calling the HNH market $59 and HBH market $57; however, there are many members of the trade who question if these levels are possible on volume type business.
The cow complex is feeling the brunt of some downward pressure as most selections are reflecting at least slightly lower trading levels. Even HNDC, which had been relatively easy to sell, are barely able to find any sustained interest around the $57.50 level, while HNC are struggling to trade at levels of $52 according to our sources. Meanwhile, HBC are absorbing the brunt of the downward pressure as we have reports that numerous producers are carrying larger than normal inventories of this selection and looking to sell volume, leading to speculation that sellers might be hard pressed to get $41 for these.
In the meantime, interest on Bulls remains decent allowing producers to hold levels steady, while interest on kip skins appears to be faltering a bit with producers commenting they might be hard pressed to obtain their last traded level of $49 this week. Interest on small packer hides appears reasonable allowing levels here to stay steady with last week.
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