Weekly U.S. Export Report - information available at: http://www.fas.usda.gov/export-sales/hidesfax.htm      

 

THE HIDE MARKET - January 30, 2012

 

Despite most Asian tanners being out on holiday for Luna New Year last week, the U.S. hide market was active and hides sold in unexpectedly good volume, while prices continued to move higher.   It was expected that the Chinese tanners, the largest group of American hide buyers, would be out of the market, but it was obvious that even some of those buyers were either bidding or buying hides last week.  For the week, the total number of hides sold was probably not huge, but that was not due to lack of demand, but rather due to the limited number of hides offered by suppliers.  Heavy Native and Heavy Texas Steer hides sold higher at $76.00 per piece FOB plant.   Big packer Branded Steer hides sold higher also with $70.00 to $73.00 per piece FOB plant being reported.    Cow hides continued to see good demand as well, and as with the Steer hide selections, the sales volume was likely not so big due to few offers in the market.   A $2.00 per piece increase in value for all Cow hides was easily obtained during the week.

 

The Export Sales Report number issued by the USDA on January 26, 2012 for sales made during the week ending Thursday January 19, 2012 showed a total of 765,700 hides and wet blue equivalents sold.   This number was similar to the 807,900 pieces sold for export the prior week.   China/Hong Kong was the big buyer taking 378,300 pieces, while Korea was the 2nd largest buyer taking 156,800 pieces for the week.

 

The F.I.S. for the week ending January 28, 2012 was 608,000 head, down from the prior week's slaughter number of 628,000.   For the same week last year, the FIS number was 654,000 animals.   From all expectations, the slaughter numbers are expected to go down further, as packer margins continue to be negative.  Last week, packers reportedly lost $120.00 to $130.00 a head due to higher live fed cattle prices.

 

With the CNY holidays over, tanners coming back to work in Asia are going to be hard pressed to find any hides at the old steady prices, or in fact, any hides being offered at all this week.  With the kills being reduced and so few hides available to begin with, tanners who have a need to buy hides are going to be disappointed this coming week, as we expect the offerings to be limited and the prices higher. 

 

A CUTE GOLF STORY

 

One day, shortly after joining the PGA tour in 1965, Lee Trevino, a Mexican-American professional golfer and married man was mowing his front lawn in Dallas, Texas and a lady driving a big Cadillac stopped in front of his house.  The lady lowered her window and asked if he spoke English and how much he charged to cut the grass.  His reply: "Yes, M'aam I do, and for doing it, the lady in the house lets me sleep with her." The lady hurriedly put the car into gear and sped off.