US Perspective - 22.10.19
22/10/2019
www.themaxfieldreport.com
Packers entered last week in possession of offer lists that looked as if they were a duplication of those of the past few weeks, while in addition, laying claims to possessing decent-to-strong sold-forward positions. Asking prices were unchanged with the past few weeks.
As to interest last week, as things usually play out, bids to start the week were not plentiful, while it appeared there were still a fair number of perspective buyers with price ideas lower than the last traded levels, who quickly discovered packers were in no mood to negotiate prices. By the middle of the week the number of bids started to increase and overall, it appears that there were a decent number of bids in the second half of the week.
Over the course of the past five weeks, we have seen a fair number of hides changing hands and in fact, looking over the previous USDA Export Sales Report leads us to believe these sales have been the best five-week period of the year. Despite decent sales, packers appear content to leave asking prices alone. Secondly, year-to-date sales are now on average close to 30,000 hides per week better than a year ago, leaving us to question reports by tanners that business is as poor as they have been touting. Demand for better-quality big packer hides appears to be decent.
Things got off to a bit of a sluggish start in the cowhide trade last week. However, by the middle of the week, like interest in big packer hides, the number of bids improved and for the first time in a long time, it appeared there was some decent interest in lower-grade selections. It appeared to be coming from tanners who produce lining leather, and we suspect the recent problems with African swine fever, tanners have been forced to start considering lower-grade cowhide selections.
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