Steer hide prices trade sharply higher today, as there have been reports of firm auto business and willingness to pay higher for particular selections. Averages for all weight categories for heavy native steers (HNS) have increased-light weight have increased $1.50, heavy weight are up $2.50 and jumbos are up $0.25. The average for heavy weight branded steers (BRS) shifted upwards $0.50 and heavy weight Colorado branded steers (CBS) jumped $1.75. Averages for butt branded steers (BBS) also increased for all weight categories-light weight increased $2.50, heavy weight jumped $3 and jumbos are up $1.75.

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The wide price spreads in the hide market have started to narrow over the last two months. The light heavy native steer category (HNS-L) was trading with a high-low spread of 42.9 percent in August and that has narrowed to 33.3 percent to start the month of November. Historically, the spread between processor and packer HNS in all weight categories has been under 10 percent, but economic turmoil tied to COVID-19 has disrupted traditional trading patterns. With packer material tightening in supply, buyers have extended their reach for the cheaper, processor material and as a result, prices have come up. It’s reasonable to expect the price gap to narrow in the coming weeks as processor hides are favorably priced, and packer hide availability remains tight.