United States – Stand off with Chinese tanners
Published: 10 Jul, 2019
Many U.S. suppliers withdrew their offers on Wednesday of last week due to the July 4 holidays. It is expected that when the export figures are released for last week, it will show as a very light sales week. Many suppliers had made good sales in the weeks prior to last and were reported to be in a healthy sales position on most grades of hides. Some suppliers reported that buyers were actually chasing them for fed steer offers, leading many to believe that there is room for some upward price movement this week. More sales of cowhides and Holstein hides have been reported. With these sales the whole market from a U.S. perspective looks to be in a more comfortable position.
Branded cows and lighter weight heifers need to increase in price to allow suppliers to reach breakeven, some of the cow grades have disappeared from the offer list, suggesting that maybe many of these hides have gone straight to render.
Chinese tanners are reporting that they see no reason for hide prices to increase, as there has been no increase or demand for finished leather. It could be that this week becomes much of a stand-off week between suppliers and buyers. To read more click here.