Price advance on all selections

One sale was reported at $39 but most business was done at $40 during the last week of the month. More than one trade was posted at $41 as well. Most bids from Asia were seen at $45-$46 c&f with the bulk of trading being concluded at $46 and $47.
Prices of branded steers moved closer to Texas steers with sales taking place between $37-$38 for the most part. On a c&f basis, business was concluded between $43-$45. However, this was steady to only a dollar or so higher than a week ago. Colorado steers were posted between $34-$36 depending on origin.
Prices paid in late June for butt branded steers were mostly between $38-$39.00 for seasonal averages. Prices in Asia were seen at $44-$45 c&f.
Heavy native steer prices rose throughout June. As in the case of Texas steers, this was caused as much if not more due to a lack of supply and packer reluctance to extend their forward sales, than buyers who were willing to pay the market to secure natives. Prices seen as we go to press were between $41-$43.
Heavy native heifers were found at $30-$32 late in the month.  Trading in brands was more voluminous. Sales were seen at $28 in the Midwest and as high as $30 and up to $32 from another in the southwest.
Processor natives traded at $24 and a packer sale was posted at $26. Conventional native packers traded at $23.50 with one unconfirmed sale at $25. On a c&f basis, business was posted at $30 and up to $32 for better material. Branded cows were a bit of a drag on the market but a number of sales were concluded. Processors sold at $18 in the Midwest and $14-$15 on heavy weights in the west and southwest.
Native bulls sold at $26, up $1+ from mid June. A sale of brands was heard at $20, up a dollar and more from the previous week. We keep hearing tales from Asia that tanners have far more hides than they have leather orders, both present and future. Several travellers, who recently returned, say that they see full warehouses in Taiwan and China for example. There are even stories from reliable sources that more than a few tanners have bought all the hides they anticipate needing through November and December.
All will agree there has not been any surge in leather orders and prices that tanners can sell for have certainly not increased.
So how can tanners keep buying? Our assessment is based on one word: Profit!
Price levels are getting close to tanners ‘break even’ points based on current orders they are filling. This is estimated to be in the area of $45-$50 c&f for the most prevalent selections of shoe upper leathers, but there is still some margin. With the well, if not over, sold positions here and elsewhere, there is little immediate concern of prices falling. The big question is; will prices continue to work higher. In our estimation, until leather prices improve and, at this point, this is doubtful, steer prices are getting too close to tanners profit margins. Should they reach that level, with all of the hides that have been bought, we think that there could be a substantial drop off in buyer interest, unless prices substantially retreat.