Packers push prices up

The high prices witnessed at the beginning of the year continued on towards the end of January. Major packers were able to turn down lower bids, due largely to their forward sales positions established in the early weeks of January. Activity from Asia also picked up towards the end of January with South Korean tanners increasing their orders for heavy Texas steers. But with a long weekend holiday in Asia, orders are likely to drop off, although it is doubtful this will discourage packers from trying to push prices even higher. Trade in heavy Texas steers fluttered around the $65 mark for a couple of weeks, but with the flurry of Asian interest at the end of January, packer asking prices for heavy Texas steers averaging 60-64lb had risen as high as $67-68, but interest was scarce. Interest in branded steers was quiet, particularly given the Asian holidays, with the majority of business conducted around the $63-63.50 level. Butt branded steers traded at around $64-64.50. Colorado steers sold well at levels of around $59-60, although packers were unable to push prices any higher on this selection. Heavy native steers returned to highs of $70 after lower prices earlier in the month and remained steady for several weeks. Heavy native heifers strengthened marginally with packers obtaining prices of $62 and higher. The cow sector quietened for a week or so, but firmed again towards the end of January with limited quantities available. Total raw hide sales for the three-week period ended January 23 averaged 612,733, boosted by an above-average first week total of 847,600. High raw hide sales figures also benefited packers who were able to reject lower bids. China was the most active buyer, averaging 207,067 hides, followed by South Korea with 178,667, Hong Kong with 66,933, Taiwan with 49,933, Mexico with 33,133, Italy with 24,100, Thailand with 15,733, Japan with 13,800 and Canada with 9,567. Total raw hides shipped for export against previously sold contracts averaged 433,700 and outstanding sales averaged 3,958,033. Total wet-blue hide sales averaged 100,233. Hong Kong took the majority with 29,467, then Taiwan with 18,733, South Korea with 16,533, China with 8,700, Italy with 8,067 and Mexico with 7,333. Weekly wet-blue exports averaged 90,100 and outstanding wet-blue sales averaged 661,433. Wet-blue split sales for the three-week period averaged 840,033lb. Hong Kong and Mexico were the two most active players averaging 392,067lb and 60,133lb respectively. Weekly wet-blue split exports averaged 1,121,400lb (exluding second week figure) and outstanding wet-blue split sales averaged 14,885,000lb.