Leather Prices Update

For week ending June 18, export sales for 2020 marketing year increased 77 percent to 664,553 from 374,893 and shipments decreased 28 percent to 424,580 from 593,151. Sales for marketing year 2020 totaled 12,505,547—mostly all hides. The average year-to-date weekly trends for federally inspected slaughter were 581,760, total export sales were 500,222 and total export shipments were 488,865.

Today’s Market

The US hide market continues the week trading at similar levels to the past week, with Thursday bringing $0.50 to $2.50 higher on HNS and BBS selections. There is very little volatility in pricing for the hide market as material is circulating and inventories are piling up.

Today’s Trades

Packer Sales

HNS 60 MIN @ $24.50 OR 0.3175
HNS 62/64 @ $25.00 OR 0.3100
BBS 62 MIN @ $21.50 OR 0.2700
BBS 62/64 @ $22.00 OR 0.2725

Processor Sales

HNS 58/60 @ $16.50 OR 0.2175
HNS 62/64 @ $18.00 OR 0.2225
BBS 62/64 @ $14.00 OR 0.1725

USDA Hides and Skins Report

Net sales of 605,200 pieces for 2020 were up 73 percent from the previous week and 25 percent from the prior four-week average. Increases primarily for China (488,500 whole cattle hides, including decreases of 7,900 pieces), South Korea (68,800 whole cattle hides, including decreases of 1,600 pieces), Mexico (19,000 whole cattle hides, including decreases of 100 pieces), Taiwan (7,500 whole cattle hides, including decreases of 100 pieces), and Thailand (7,400 whole cattle hides, including decreases of 800 pieces). Additionally, net sales reductions of 600 calf skins were reported for Italy. Exports of 352,600 pieces reported for 2020 were down 32 percent from the previous week and 22 percent from the prior four-week average. Whole cattle hides exports were primarily to China (297,400 pieces), South Korea (30,400 pieces), Mexico (8,300 pieces), Thailand (6,500 pieces), and Indonesia (3,900 pieces). In addition, exports of 1,400 calf skins–a marketing-year low–were to Italy.

Net sales of 58,700 wet blues for 2020 were up noticeably from the previous week, but down 33 percent from the prior four-week average. Increases were reported for China (23,700 unsplit, including decreases of 300 unsplit), Italy (15,000 grain splits, 1,500 unsplit, including decreases of 200 unsplit), Thailand (14,400 unsplit), Mexico (3,200 unsplit, including decreases of 200 unsplit), and Brazil (900 unsplit). Exports of 73,300 wet blues for 2020 were down 6 percent from the previous week and 10 percent from the prior four-week average. The destinations were primarily to Italy (49,300 unsplit and 1,700 grain splits), Thailand (5,600 unsplit), China (4,800 unsplit), Vietnam (4,400 unsplit), and Mexico (3,200 unsplit). Net sales of 121,800 splits were for Vietnam. Exports of 120,000 pounds were to Vietnam.

Link to Complete USDA Report:  EXPORT-SALES/HIDESFAX