United States – Currency a double-edged sword
Published: 22 Jun, 2022
Last week (June 17) ended with steer prices on several selections slightly higher than they entered the week. Chinese and Mexican tanners were reported to be active in the market, with both looking to source material for the automotive industry. Both sets of tanners were looking to secure material and wanted the material shipped when ready, many U.S. suppliers now will take the offer from Mexican tanners first as this means shipment – often by road – can take place immediately, the freight logistics when sending hides to the Far East are well documented. Not only is there reported to be an improvement in the automotive industry, which is causing a spike in interest, but also a worry about the escalating value of the US$ against local currencies. Tanners are looking to buy now rather than wait for the currency to move further against them. For exporters this is a double edge sword; on one side there are concerns that hide prices may stagnate or even fall because of the exchange rates, while there is also good news that some of the older sales which had looked vulnerable, now look safer because customers would have covered the currency against these sales.
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