US Perspective - 24.06.08
25/06/2008
Prices of US big packer hides remain unchanged and in light of the recent large USDA Export Sales Report—which surprised most in the trade with 620,000 wet-salted hides sold—it does not appear as if packers need to sell as badly as many had originally thought.
Overall, although the consensus in the trade is that big packer hides are too expensive and are in need of an adjustment, it appears the trade has forgotten to share this opinion with packers, who continue to insist on their last traded levels.
We continue to hear that HNS are easily able to bring in levels of $67.50, HTS $66.50 and BS $65. In the meantime, heifers continue to hang over the market as most packers continue to own larger than usual inventories of this selection, and if there is any weakness on packer hides it would be heifers.
Meanwhile, producers of cow hides are struggling to liquidate their weekly productions as interest on cows has slowed considerably the last ten days to two weeks, especially on HBC.
Even HNDC, which had been fairly easy to sell last month, are running into some major resistance. If our sources are correct, they are struggling to bring levels of $55–$56.
In the meantime, HNC are trading in a range around $50–$51, while the news surrounding HBC appears the most bearish, with thoughts that $41 might be considered a “good” price by many producers.
Also worth noting is that interest on Bull hides has subsided quite a bit the last couple of weeks and this has resulted in prices easing. We have reports that Natives are struggling to trade above the $61 level, while interest on Brands is even worse, with reports that they are no better than $54–$55.
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