As it happens whenever the market is bearish, there were plenty of stories about below-market sales cloaked in secrecy. With regard to sales during the second quarter, sellers had interest but most weeks it was not at price levels that they wanted to accept. Workers at ports along the entire West Coast had been working without a contract since July 2022 with negotiations dragging on for nearly 13 months. Many sectors, including the hide market, breathed a sigh of relief in June when the International Longshore and Warehouse Union and the Pacific Maritime Association reached a tentative deal on a new six-year contract covering workers at all 29 West Coast ports.Īlthough the agreement had to be ratified by both parties, the outlook was good. Already in 2023, liquidation is slowing, with beef cow slaughter down by 11.5% so far. This is important because 2022 saw a record culling of the beef herd. As soon as its possible, the market will have great incentive to rebuild the size of the US herd, they say. The 20 cattle price forecasts are raised on firm demand.Īt the same time, US cattle experts say that the drought has pushed beef cow herd liquidation and that this has made the beef industry smaller than it needs or planned to be. Higher anticipated feeder cattle placements in third-quarter 2023 are expected to raise fed cattle marketings in early 2024, which minimally raises the beef production forecast next year to 24.8 billion pounds. It is expected to be to 27.1 billion pounds based on recent slaughter data and a faster pace of marketings expected later in the year. In June, The USDA Economic Research Service slightly raised its beef production forecast for the year. Other disappearance totalled 74,000 head during May, 3% below 2022. Marketings of fed cattle during May totalled 1.95 million head, 2% above 2022. Placements in feedlots during May totalled 1.96 million head, 5% above 2022. This is 14% higher than the April average but 15% lower than May 2022.Ĭattle and calves on feed for the slaughter market in the US for feedlots with capacity of 1,000 or more head totalled 11.6 million head on 1 June 2023. Weekly wet-blue sales in May averaged 124,740, down by 11% from the April average and by 12% from the May 2022 number. With regard to rawhide shipments, the May average was 409,500, 6% higher than in April but 5% lower than in May 2022. Still, demand for upholstery was not good enough and it was a challenge for sellers to maintain the status quo.įor the month of May, weekly rawhide sales averaged 464,720, which is 12% higher than the April average as well as the May 2022 figure. In fact, in late June, some cows added $0.50 to $1.00 to their prices. In the cow market, interest was healthy enough for sellers to develop good positions and keep prices steady. Although it picked up a bit in June, heavy native steers ended the month a few dollars lower at $32.00 to $33.00 for seasonal weights. Interest in hides for the automotive sector died off significantly in the late spring and prices declined too. There was little improvement in June, but some sales were reported up to $25.00 at the end of the month.Ĭolorados also saw prices slip, with 62/64lb selections selling at mainly $23.00 in May and June. The price of heavy Texas steers slipped lower in the second quarter, with seasonal weights dipping to a low of $23.00. With regard to wet-blue, supplies were more than plentiful and prices low. While demand remained weak, sellers were still able to move enough material each week to keep the market stable. Prices ping-ponged within a $2.00 to $3.00 range for an extended period. The US hide market was mainly steady from the late spring through June.
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