US Perspective—28.10.08
The Jacobsen Commentary and Market Opinion
Courtesy of www.thejacobsen.com
Much like the global community, North American markets have been extremely quiet this week with little business being reported. The trades that are coming in are at lower levels and buyers seem to be increasingly willing to part with their hides at lower levels. The big packers have been fairly taciturn this week, which could lead us to believe that they are not budging on their selling ideas.
Taking a look at the numbers from a year ago, it is fairly astonishing to see how well the steer market has fared in relation to the cow and bull market. On October 23, 2007, the 60-65# selection on HNS was reported at between $66-66.50; today that number is $65-68. Even if we take the low trade versus last year’s high trade, it is only a difference of $1.50 per piece. On the same date last year the average price of HTS 62–70# was $64, exactly what it is today.
We should take this into account against N HNC, which at this time last year were fetching an average price of $49.75 versus $34 today, a decrease of 31%. Finally, it is worth taking a look at NB 100-120# last year which were at an average of $59.25 on October 23 and are today at an average of $42.50, a 28% decrease. While $1.50 per piece is certainly nothing to sneeze at, it pales in comparison to an almost 30% decrease on a few selections of cows and bulls.
