US Perspective - 9.2.15
Courtesy of The Maxfield Report
www.themaxfieldreport.com
Reports from various members of the big packer trade claim the number of buyers looking to buy hides decreased as the week progressed. For the most part, the sources claim that the few bids they have seen this week have been running well below the asking prices sought by packers. When attempting to counter these aggressive ideas, the majority of buyers withdrew their bids, insisting that they would prefer to revisit buying hides after the Chinese New Year celebrations.
Overall, bids were sporadic and it looks as if we will have yet another week where sales will not exceed the slaughter. However, sellers are quick to point out that they could have sold a decent number of hides this week, although they would have had to be willing to accept lower prices and with most packers looking for steady / slightly lower levels, it is likely sellers passed more business than was booked.
Our weekly TMR Big Packer Hide Index comes in unchanged from last week, checking in at $58.20, remaining at its low for the year. Compared with a year ago, our index is down $35.65 or 37.9%, while for the year, our index is down $3.90 or 6.3%.
Reports from members of the cowhide trade are similar to those in the big packer trade. Overall, interest was best described as “sporadic”, as it appears the number of bids slowed as the week progressed. Sources report that vast majority of buyers expressing interest had ideas well below those of sellers and there were likely more sales passed this week than booked.
Our weekly TMR Cowhide Index comes in unchanged this week checking in at $43.25, its lowest level of the year. Compared with last year, our index is down $23.50 or 35.2%, while for the year, our index is down $1.00 or 2.3%.
