US Perspective - 01.07.08
01/07/2008
The Jacobsen Commentary and Market Opinion—01.07.08
Courtesy of www.thejacobsen.com
Prices of big packer steer hides finally reflected some incremental increases last week as we have confirmed sales of HTS trading at levels of $67, as high as $67.50 on C & F sales, and as high as $74 delivered to China.
In the meantime, we have heard rumours of HNS reaching as high as $68 this week, while BS were traded as high as $66, with BBS exchanging hands at $66.50 and CBS at $64. The underlying pressure on heifers appears to be easing as we have reports of HNH obtaining as much as $59, while HBH are not far behind at $57.50.
You do not have to look very far to find some rather pessimistic attitudes on cows, especially HBC. We have heard of trading on HNDC running in the range of $55–$56, while HNC still appear as if they are able to keep above the $50 level with reports at $51–$52. However, HBC continue to hang over the market and things are not looking good as we have some pundits who are forecasting HBC prices could slip below the $40 level in the next few weeks.
Bulls in the meantime have seen interest dry up considerably and this has put pressure on prices. Natives are struggling to stay above $60, while Brands are wallowing in the lower $50 level.
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