THE HIDE MARKET – March 8, 2010
The U.S.
Steer hide market was active last week, as prices broke out on
the top of the recent range and registered price gains of
about USD 1.00 per hide. Buying
activity was not limited to either one country nor to one area
of the world, as China, Korea, Taiwan, Europe and U.S.
domestic tanners were all in the market trying to buy raw
stock.
Heavy Native Steer hides sold at both USD 68.00 and USD
69.00 per piece FOB plant. Heavy Texas and
Butt Branded Steer hides traded at USD 67.00 and USD 68.00 per
piece FOB plant during the week. Cow hides also found
good demand and trades that were reported indicated that
prices of all the Cow hide selections jumped up about USD 1.00
per piece as well.
The Export Sales Report
number issued by the USDA on March 4, 2010 for sales made
during the week ending Thursday February 25, 2010 showed a
total of 469,900 hides and wet blue equivalents sold for
export, up slightly from the 430,800 pieces sold the prior
week. China/Hong
Kong was the largest buyer taking 182,400 pieces, while Korea
was the second largest buyer purchasing 103,500 units for that
week.
The Federally
Inspected Slaughter (FIS) for the week ending March 6, 2010
was 617,000 head, down from the previous week's slaughter of
632,000 head. For
the same week last year, the FIS totaled 603,000 animals
processed.
For this
coming week, we see no opportunity for hide price relief for
tanners. If
anything, prices will have to go higher. Hide production
numbers here in the U.S. are about steady, but one has to look
at the world supply of hides to really get the proper
perspective on where we are. South American,
European, and Australian slaughter numbers are down, forcing
tanners to look more to the U.S. for raw material needs. At the same time,
leather business world-wide remains excellent since tanners
are in the middle of making leather for the fall shoe
lines.
This combination means that American hides will find
themselves in bigger demand with prices, for now, continuing
to go higher.
WORDS TO THE GOLFER
If you find that you do not
mind playing golf in the rain, the snow, or even during a
hurricane, here is a valuable tip: Your life is in
trouble.
