After a sharp run up in prices over two months, steer prices in America finally reached a plateau by the first week of December.
Prices on heavy Texas steers topped at $65 but only in small numbers as most trades took place at a peak of $64. Jumbo Texas averaging between 74-78 lb sold first at $67 in late November but levelled off at $66 by the first week of the month. Prices on a c&f basis struggled to surpass $70.
Branded steers, the second most voluminously produced selection sold at a top of $63-$64 and only in a few instances managed anything over $69 c&f.

Previous fears of a crash in hide prices were unfounded as the hide market continued to surge forward during November and December. Indeed hide prices are now higher than before the last crash with no apparent end in sight to the price increases.

Excluding the week of the Thanksgiving holiday and using four full week figures to December 5, 2009, the average weekly Federally Inspected Slaughter amounted 629,000 head (640,750 in our previous report). Last year the average for the time of year was 624,750. Overall, slaughter was down 3.9% on the previous year.

Federally Inspected Slaughter in the four week period ended October 31, 2009, amounted to an average weekly kill of 640,750 (651,250 in our previous report). Last year the average for the month was 639,250.

The anticipated increase in kill in the UK and Ireland failed to materialise, catching everybody by surprise. It appears that slaughterers were only buying cattle to cover their sales and were not building up any stock in their freezers.

Steer prices rose 15% since our last report and cows, while not quite so popular, gained traction as well. During the last week of October, Heavy Texas, butt branded, branded and native steers advanced between $2-$4 as over sold producers forced Asian tanners in need of inventory to meet their demands.

By Amanda Michel of Leather Wise
This is the last in a series of articles that have discussed the composition of the hides and skins that we use for making leather and what the implications are of that composition for the tanner. In this article inter-fibrilliary matter is discussed

By Amanda Michel of Leather Wise

By Amanda Michel of Leather Wise

The market has changed direction since the last report. After reaching a peak in the fourteen days leading up to the Shanghai leather fair in the first days of September, steer prices fell with cows showing weakness as well.

The Shanghai Fair this year was very interesting as Chinese buyers decided that the market had become over cooked, and consequently they stood back to see what would happen.

Federally Inspected Slaughter in the four week period ended September 5, 2009, amounted to an average weekly kill of 651,250 (627,000 in our previous report). Last year the average for the month was 639,250.

Prices rose on all categories since our last report as the rapid run up on prices seen in July continued into August. After closing at the end of July at $53, heavy Texas steers advanced subsequently, albeit in limited volume due to sellers only offering sparingly, if at all. Prices seen on a c&f basis were as high as $63. However, they appeared to be much lower than normal due to a lack of offerings.

The interest in hides from China has continued right through the summer with demand across the whole weight spectrum. A huge demand for 46kg+ has also been seen which is surprising as this is a weight of hides not normally sold in China in large numbers. This has caused prices to move on sharply again and as always with such steep increases in hide prices there is the fear that sharp declines could be just around the corner.

Federally Inspected Slaughter in the four week period ended August 7, 2009, amounted to an average weekly kill of 627,000 (655,500 in our previous report). This was down 5.1% on the previous year when the weekly kill averaged out at 670,750.

Prices on all selections advanced since our last report. Producers kept selling into already very far forward sold positions forcing buyers to pay more if they wanted to secure product.
Packer offerings were less than plentiful in June due to their over-sold position. Buyer interest was good, but generally several dollars below established prices.

There has been a flurry of interest in hides from China during the last few weeks that is not replicated in other markets. This interest has been for hides for prompt shipment and there is fascinating speculation as to what is behind it.

Federally Inspected Slaughter in the four week period ended June 20, 2009, amounted to an average weekly kill of 655,500 (658,500 in our previous report). This was down 5.3% on the previous year  when the weekly kill averaged out at 673,000 (down 6% compared with a month earlier).
Cattle and calves on feed for the slaughter market in US feedlots with a capacity of 1,000+ head of cattle totalled 10.4 million on June 1, 2009. This was 4% down on June 1, 2008.

Exports remain healthy as a percentage of slaughter which can be construed as a sign of how low tanners’ inventories in the Far East had been for US hides. Hide prices jumped in May.  However, as the month came to a close, buyer interest narrowed and slowed as the number of hides changing hands appeared to be fewer than those produced.
As of mid May, the total combined raw and wet-blue outstanding orders still to be filled totalled 7,440,500 pieces. This again surpasses the previous record of 7,227,600 set a week ago and 6,573,400 the week before that. Combined raw and wet-blue outstanding amounts set a record – again!

Kills have been low over these last two months in Europe but are running at the seasonal high levels in America, and yet we have seen an increase in prices from tanners and also traders who deal in the Far East.

Federally Inspected Slaughter in the four week period ended May 16, 2009, amounted to an average weekly kill of 658,500 (603,000 in our previous report). This was down 6% on the previous year when the weekly kill averaged out at 708,000.

Federally Inspected Slaughter in the four week period ended April 17, 2009, amounted to  an average kill of 603,000 (614,000) and was down 5.7% on the previous year  (642,500).

Hong Kong was fascinating this year as for the first time in the writer’s experience the bulk of the volume of business from Ireland has shifted from Europe to China. One Scandanavian seller stated that although he had felt that for many years his business would gravitate to China, this was the first year that it had actually happened. Indeed, he said that in previous years his business had been 80/20 Europe/China, this year it had switched to 80/20 China/Europe.

Prices maintained the stabilisation that began at the time of our last report but efforts to work them higher were unsuccessful. Perhaps as important, producers managed to build some forward sold positions for the first time this year. Additionally, a good share (if not nearly all) of the hides that processors and packers had been stored in outside warehouses were finally able to ship, thus erasing a detrimental overhang to the market.

This is the second in a series of articles that will explain the principle components that are found in hides and skin, what their functions are in life and what their implications are for the tanner. In this issue we will discuss, in simple terms, what is probably the most important component, collagen, which forms the basis for all leather produced.

This is the first in a series of articles that will explain the principle components that are found in hides and skin, what their functions are in life and what their implications are for the tanner.

Kills in Ireland were above average in July and around 30,000 cattle per week. This larger than normal supply of hides combined with the reduced demand from Italy to put pressure on prices.

According to two USDA cattle reports there are fewer cattle on US feedlots than a year ago but more heifers than expected are being held for beef cow replacement.

Anthony D Covington, British School of Leather Technology, The University of Northampton, discusses the possible future directions of tanning without chromium. This is an abridged version of the second part of the paper he gave at the Washington IULTCS congress 2007: ‘Quo vadit chromium?'

The Problem

Circular areas of damage to pelts in the central shoulder area of sheepskins can be a result of damage occurring during the electrical stunning of sheep at the abattoir. Being in the centre of the skin, this inevitably leads to loss in loss of usable area and downgrading of skins.

For still another month, hide prices were basically unchanged. A number of large processors as well as packers reported continuous weeks of being able to sell all the hides they wished. However, by mid May, a softer undertone could be detected in the cow sector, but brands, natives and dairy cows could still not necessarily be called weak. The only category that appeared to be softer, were low grades.

The long hot summer has begun early this year. Kills are lower and so is demand. It seems as if fuel bills are now increasing on a daily rate and the dark mood that prevails in our industry is further compounded by the collapse in the property market in the UK and Ireland. People are depressed because they feel that they have lost something that they never had in the first place.

In the four week period ended May 24, Federally Inspected Slaughter amounted to an average kill of 708,750, up from the 660,000 of our previous report and also up on the 684,250 average of the same period last year. FIS was running at 1.4% over the 2007 figures.

The American market, that had been limping along for much of the year, came to life during the first week of March as Asian buyers found the need to step in and replenish depleted inventories.

The topsy-turvy world of share market collapses, interest rates cuts and share market recoveries continued unabated throughout March. The American banking system, just as Julius Ceasar before it, failed to beware the ides of March and Bear Sterns suffered the same fate as good old Julius.

In the four week period ended March 23, Federally Inspected Slaughter amounted to an average kill of 639,750, up from the 620,000 of our previous report and also up on the 631,500 average of the same period last year. FIS was  running at 0.4% behind the 2007 figures.

Ron Sauer was invited by the organisers of the IILF fair in Chennai, India, to present a seminar on ‘World raw material markets and the status of the tanning industry in China, Italy and Brazil.' Here we provide extracts from the presentation which proved popular with delegates

In the four week period ended April 26, Federally Inspected Slaughter amounted to an average kill of 660,000, up from the 639,750 of our previous report and also up on the 635,250 average of the same period last year. FIS was running at 0.7% over the 2007 figures.

In the four week period ended February 23, 2008, Federally Inspected Slaughter amounted to an average kill of 620,000, down from the  663,750 of our previous report and also down on the 627,000 average of the same period last year. FIS was running at -1.3% behind the 2007 figures. Cattle and calves on feed for slaughter at feedlots with capacities of 1,000+ head, totalled 12 million on February 1, 2008.