Market Activity & Analysis

The Jacobsen Hide Index closed at $17.36 on Friday, compared to $16.14 the week prior. Big packer steer prices included Heavy Native Steers from $30, Butt Branded Steers from $25.50 to $28, Branded Steers at $17, and Colorado Branded Steers at $16 and Heavy Texas Steers at $18 FOB plant.

Packer beef margins on Hedgers Edge were a positive $366.52 per head versus a positive $358.01 the week before.

The Week’s Slaughter Forecast

The Jacobsen slaughter forecast for this week is 575,000 head, and if realized, will be 61,100 head less than the same week last year when it was 636,100.

Cattle slaughter finished last week 633,000 head, up 10.8 percent from a year ago. Over the next six weeks, slaughter is forecast at an average of 625,000 head, down an average of 2.6 percent from the prior six weeks and down 3.4 percent compared to last year.

Figure 1.

Today’s Market

After last week’s strong close, the US hide market began this week quietly. Heavy Native Dairy Steers have seen a bump in price which can be reasonably attributed to the improved demand from the upholstery sector.

Today’s Trades

Packer Sales

HNDS 60/62 @ $24.00
BBS 64 MIN @ $27.50 OR 0.3350

Processor Sales

BBS 62/64 @ $19.00 OR 0.2350

Cured and Wet Blue Export Sales by Selected Countries  —  Through August 27

Figures 2 & 3.

Industry-Related News

September 4 (ABC News) – US employers added 1.4 million jobs in August, unmemployment rate at 8.4%

U.S. employers added 1.4 million jobs last month and the unemployment rate fell to 8.4%, the Bureau of Labor Statistics said in its latest employment report on Friday. While the fresh data may indicate some hope for an economy walloped by the COVID-19 crisis, the unemployment rate still isn’t anywhere near pre-pandemic levels. In February, the unemployment rate was 3.5%. “Looking at one month of job gains doesn’t provide the appropriate context, you really need to look and see how far we still are in the hole,” Elise Gould, a senior economist at the Economic Policy Institute think tank, told ABC News ahead of the report’s release. “In April, we lost more than 20 million jobs in one month. It’s going to take months, if not years, to get back to that level.” READ MORE