US Perspective - 21.7.20
www.themaxfieldreport.com
Some packers started the week with offer lists slightly less populated than the week before, which caught most by surprise, as the week prior was not a particularly busy week of trading. Most prices were the same as the week before, with a few incremental increases on some of the more favoured selections.
The most noticeable change was shipping, with most dates moved out a week or two, and no apparent offers available for prompt shipment.
There were more than ample offers of wet blue hides, with speculation producers had more for sale than they were willing to admit. Supporting these suspicions were “rumblings” that there were selections of wet blue hides at only $10 higher than similar selections of wet salted hides.
Buyers tried to bid prices lower, but packers were unwilling to negotiate. For the fourth consecutive week, packers were able to hold the market steady. It was not a busy week and it is unlikely that packers cleared their production.
Most cowhide producers’ offer lists were well populated, especially with lower grade selections, while offers of HNDC were not nearly as prevalent. Some of the lower grade selections still had prompt shipment available.
Asking prices were the same, with producers explaining that lower prices would render these hides worthless.
Interest on HNDC seemed to improve and producers tried to raise prices.
Many buyers attempted to bid prices lower but producers sought to hold prices steady. Sales were concluded at steady levels, and it is unlikely producers cleared their production.
THE LOOK AHEAD
It will be interesting to see if there is much of a change to offers of wet salted hides this week and we expect more than ample numbers of wet blue hides. It seems the market has found a trading plateau despite harvest levels running at their highest levels of the year.
Shipments of wet salted and wet blue hides remain dismal (nine consecutive weeks of shipments falling well short of the harvest), and this supports thoughts that producers are playing a dangerous, high-stakes game.
