Last week started with U.S. Raw and Wet Blue hide suppliers putting out their offer lists as they normally do on Monday or Tuesday. The asking prices on those lists did not change very much, if at all, from the levels they have been for weeks now. The one thing that was noticeable last week was the absence of Holstein Steer hides on most suppliers’ offering lists. It became apparent during the week that suppliers are very oversold on Dairy Steers. Also noticeable regarding suppliers offering list was an increase in the number of “Jumbo” Steer hide being offered. Tanners response to suppliers asking prices on the other Steer hide selections was to bid lower than last traded levels. We would say that the volume of bids did increase substantially last week from the prior week. Suppliers countered those bids at slightly higher than last sales levels, as they have been doing for the past several weeks. The response from many tanners regarding counters was to withdraw their interest, which surprised many sellers. As the week progressed, sellers and buyers of Steer/Heifer hides did put some business together and that business was done at prices we would call mixed depending on selection. Heavy Native and Butt Branded Steer hide values were down $0.50 per piece on average while the Heavy Texas and Branded Steer hide selections sold at price that were up $0.50 on average. U.S. Cow hide suppliers, who have seemed to be eager sellers for the prior few weeks, stiffened their stance on some selections last week. As a result, Cow suppliers were able to garner some increases on their sale prices. These were not big increases, but increases, nonetheless. We will say that Branded Cow hide sale prices were up by $1.00 per piece on average for the week. The Export Sales number reported by the USDA last week for the prior week’s sales of U.S. cattle hides came in at a level that was just okay from a seller’s point of view. Cattle slaughter here in the U.S. last week just over 650,000 head, as beef packers continued to ring up big profits.
What we are calling the per piece FOB plant prices for seasonal average weight Big Packer Steer hides are as follows:
- Heavy Native Steer hides at $38 to $39.00 per piece, down $ .50 for the week.
- Butt Branded Steer hides at $36.00 per piece, down $ .50 for the week.
- Heavy Texas Steer hides at $26.00 to 27.00 per piece, unchanged for the week.
Last Thursday, November 7th the USDA’s released its Export Sales Report for the week ending Thursday, October 31st. The report showed that 567,400 raw and wet blue cattle hides were sold for export during that week. This number up just up a bite from the 554,200 pieces reported as sold the prior week. The number one buyer was China which purchased 309,100 units. The second-place buyer was Korea with 110,600 pieces bought, all of which were raw hides.
The USDA estimated Federally Inspected Slaughter (FIS), for the week ending Saturday, November 9, 2019, was 651,000 head of cattle. This number is higher than the 649,000 head reported harvested during the same period a year ago.
This week we look for the U.S. hide market to remain steady to slightly firmer. We feel some selections like the Branded and Heavy Texas Steer hides along with Branded Cow hides will see their values creeping higher. While other selections like the Heavy Native and Butt Branded Steer hides sale prices will remain steady. Oh, by the way if any Holstein hides, Steers or Cows are on suppliers offering sheets they will, for sure, bring higher prices.
GOLFER AND CADDIE
New golfer to caddie: “Damn I want to be a gofer in the worst way.”
Caddie to new golfer: “If you stop now, you’ll be way ahead of yourself.”