The interest in U.S. cattle hides that we had seen the prior couple of weeks continued with gusto into and throughout last week. Some U.S. hide suppliers were saying at the end of last week that it had been one of the best sales volumes wise that they had seen for some time. One would expect that sale prices would have gone up in the process and they did but only to a small degree, just not on all selections. In fact, the value of the Heavy Native Steer hide selection, due to the ongoing lack of interest from the U.S. automobile upholstery tanners, lost $1.00 in value. The price levels for the U.S. Branded Steer hide selections were all up $1.00 per piece. The exception being the Heavy Texas Steer selection, whose value we will call steady with its prior traded level. Along with the advances in most of the Branded Steer hide values, U.S. Cow hide sellers were able to get some increases in their prices as well last week. Dairy Cow hides were more in demand than the plump Cow hide selections, but sales prices for all Cow hides moved up by a least $1.00 and in some cases up as much as $2.00 per piece. The better grading hides, particularly those known for having good grain quality like Holstein Steer hides, remained much more in demand than medium to low quality hides. The price spread between these different grading selections remained very wide. Even with packers positive per hide margins falling due to cattle prices moving higher. Last week’s U.S. Cattle slaughter remained in the expected range
Our quotes for last Friday’s FOB plant prices for the seasonal average weight 65/70 lb. Big Packer Steer hide selections. These prices remained within our last week’s price ranges but at the top of those ranges.
- Heavy Native Steer hides at $42.00 per piece, down $1.00 for the week.
- Butt Branded Steer hides at $39.00 per piece, up $1.00 for the week.
- Heavy Texas Steer hides at $30.00 per piece, unchanged for the week.
It’s been four weeks now with no USDA Export Sales Report for cattle hides and skins. We are guessing that when the USDA does start sending this report again, the first report will be a catchup report reporting these past four weeks.
The USDA estimated the U.S. Federally Inspected Slaughter, (FIS) for the week ending Saturday, January 19, 2019, was 620,000 head of cattle. Very similar to the 626,000 animals harvested the prior week. Year to date is an estimated 1,695,000 head which is down 4.2 percent from a year ago.
After a few weeks of good activity accompanied by some increases in sale prices for most selections we expect all U.S. hide suppliers will raise their asking prices this week. Most suppliers we feel have moved their sold ahead positions far out enough that they are now more than comfortable. Will tanners pay more for U.S. hides this week? Well, if they wish to buy any hides they will have no choice but to pay more. It appears that due to suppliers more comfortable sold ahead positions they will be able to skip selling for a week, unless they feel a sale is beneficial to their bottom line. We can’t predict that hide prices will make a big jump up, but we do feel there is still room to move prices up a bit. Good business to all!
CREATIVE PUNS FOR THE EDUCATED MIND
Two silk worms had a race. They ended up in a tie.
A chicken crossing the road is poultry in motion.