The Jacobsen Hide and Skin Bulletin. Commentary and Market Opinion. Thursday, June 3 2004
Thursday’s activity was on par with the rest of the week as sellers reported bids were few and far between. Bidding levels were approximately $2 below the targets of producers and those with interest were more than certain they would lose their bids once any type of counter above the bidding price was presented. By the end of the day Thursday, it appeared both sides (buyers or sellers) were yet willing to concede and speculation was we might go the week without any sizeable volume trading. Of course with the limited activity, the bears were quite active in the market attempting to talk the market lower, while producers were holding out for hopes that a forecasted reduction in the slaughter due to profit margins declining for packers, might allow for a little more time to hold out for more money. For the balance of the week, we have our doubts if any serious volume of trading will take place. We understand there is some limited volume of bids at $68 delivered on HTS which depending on freight calculations may work; however the vast majority of the limited bids which are out there are too far below ideas to pursue. Therefore, we are still of the opinion most will take this week as a “wash” and look for buyers to apply additional pressure next week in hopes to soften the ideas of sellers. For further information visit www.thejacobsen.com
