Looming UAW Contract Expiration Adds Negative RIsk to Market

Looming UAW Contract Expiration Adds Negative RIsk to Market

Midweek trading was active for cow hides. Dairy cow and native cow prices increased today $1-$2 per piece on strong demand. Buyers in the Hebei province in China remains active in the US hide market and are currently the busiest sector in the leather industry. Tanners in the Hebei province specialize in furniture upholstery which suggests demand from the furniture sector is trending higher.
A cow hide seller stated supply is tight for cow hides, particularly dairy, which also encouraged the upward price movement.
Automotive tanners continue to be active in the market, inquiring about new purchases. However, the upcoming expiration of the United Auto Workers (UAW) contract remains in question whether a strike will occur. If it does, the hide market is prepared to see auto tanners refuse to take hide shipments as well as minimal interest to buy until the strike is settled.

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