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US Daily Market Report Tuesday, January 17, 2017

By Don Ohsman | U.S. Daily Market Report | January 18, 2017 | 0

 

THE DAY AT A GLANCE
  • Typically quiet Tuesday
  • Butts $74.00
  • Natives $75.50
  • Mexican fumigation requirement update
  • Truckers can make port appointments?
  • Today’s trend: Watching and waiting

 

 

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HEAVY TEXAS STEERS

 

  1. A packer offering on 64/66 lbs. was seen today at $73.00
  2. 84/86 lbs were available at $77.00
  3. One producer offered 74/76 lbs. at $75.00

 

 

BRANDED STEERS

 

  1. An offering of 74/76 lbs. was seen at $76.00

 

 

BUTT BRANDED STEERS

 

  1. 76 lb.minimum averages were offered at $84.00
  2. Seasonal weights were recorded at $74.00
  3. A bid on seasonal weights at $72.00 was countered at $74.00

 

 

HEAVY NATIVE STEERS

 

  1. Extra heavy averages were offered at $83.00
  2. 64/66 lbs. traded at $75.50

 

 

HEIFERS

 

  1. An unconfirmed report was heard of natives trading at$60.00 on 55 lb.minimum averages

 

 

PLUMP COWS

 

  1. Lighter average Midwestern natives were offered at $39.00

 

 

HOLSTEINS

 

  1. Packer steers were offered at $80.00 on 66/68 lbs.

 

 

BULLS

 

  1. 90/100 lb. brands were offered at $49.00 Laredo

 

 

SMALL PACKERS

 

  1. 58/60 lb. natives  could be bought at $49.00 Laredo

 

 

LOW GRADES

 

  1. Packer machine damaged thirds sold at $41.50

 

 

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INDUSTRY NEWS

 

 

 

Mexico to require fumigation of hides

On January 9th, Mexican importing authorities announced that effective immediately, all incoming hide shipments had to be fumigated to their specifications before entering their country. The regulation is listed below. These regulations first appeared in our Friday edition of the U.S. Week in Review

We understand that a meeting was scheduled today between USHSLIA and APHIS but as we go to press, we understand that nothing transpired. Now, the USHSLIA advises that APHIS has scheduled a meeting for Thursday the 19th to try to work out a solution that will not be so severe to shippers.

Indusrty sources have advised that fumigation costs have been estimated to be between $200-$600/truck/rail car and that US exporters are trying to get, if need be, for the Mexican importer to pay any fumigation charges.

We will keep readers apprised as more news becomes available.

 

National Health, Safety And Agricultural Quality Service General Health Office Animal

Import And Export Address

Animal Health Requirements

SPECIES: Bovine

ZOOTECHNICAL FUNCTION/USE: Industrial use

GROUP OF GOODS: Raw hides of bovine

COUNTRY OF ORIGIN: United States of America

________________________
 

REQUIREMENT (S)

1.- Submit an original health certificate, issued by an APHIS authorized officer, stating:

2.- Name and address of the exporter and importer.

3.- That the merchandise is originating in the country indicated in this document as origin.

4.- That the skins have been obtained from animals that have not been sacrificed to eradicate epidemics.

5.- Prior to export, the skins were subjected to:

(A) a salting process in a sea salt solution containing 2% sodium carbonate or equivalent for at least 16 hours at a temperature between 15 ° C and 21 ° C

(B) that the skins were subjected to a dry salting process with sea salt containing 2% sodium carbonate or equivalent, for 7 days.

6. That the skins were handled in such a way as to avoid contamination with other products of animal origin after treatment.

Other requirements to be fulfilled at the Agricultural Health Inspection Office (OISA) at the presentation of the shipment:

7.- The Agricultural, Aquaculture and Fisheries Health Officer will carry out the documentary verification and total physical inspection of the shipment.

8.- The importer must present a certificate, issued by a company duly accredited by the federal or state authority of the country of origin, stating that the container and hides were fumigated prior to export with an insecticide with larvicidal effect, Must indicate the dose and the product used, the said document must have a validity not more than 15 days before the shipment, as well as a letter under protest to tell the truth, where the final destination of the merchandise is indicated in writing.

9. Before deconsolidation of hides or skins, OSAAP shall verify the absence or presence of live larvae, flies or other arthropods in the merchandise on the front of the container, on the doors and on the door rails, As well as in the visible part of the container floor. In case of not detecting them, it will allow the deconsolidation of the merchandise in order to inspect the rest of the shipment.

10.- When a pest is detected at the time of deconsolidation and inspection of the merchandise, the process will be immediately suspended and the merchandise returned to the container, the following procedure will be closed, sealed and applied:

A) OSAAP will take samples of larvae, pupae and adults and send them to the National Center for Animal Health Services (CENAPA) and the National Center for Phytosanitary Reference (CNRF) to exclude the presence of Cochilomyia hominivorax, Chrysomya bezziana or other Exotic pest for Mexico.

B) The container shall be fumigated with aluminum phosphide or methyl bromide at the dose and time of exposure recommended by the manufacturer of the product and shall be applied by a company that provides the service of phytosanitary treatments with chemicals that is listed in a published list On the SENASICA website. After the product has been applied, the container must be sealed. The certificate of treatment issued by the company authorized by SENASICA must include the time of exposure of the product used.

C) Treated vehicles must be marked with visible signs with precautionary signs of no entry until they have been ventilated, a process that will have a minimum period of 12 hours starting after the exposure time has elapsed.

D) The importer must submit a letter under protest of truth telling that he will be responsible for opening the treated container at the time of withdrawal indicated in the certificate of treatment of the authorized company.

E) During the treatment of aluminum phosphide or methyl bromide, as well as during the ventilation period, coarse transparent plastic or insect screen shall be placed on the doors of the container, so that doors can be opened, but That contains the risk of dissemination of live pests in case of bringing them or that the treatment has not had the desired effectiveness.

F) The fumigation operation will be carried out under the supervision of a Sanitary, Agricultural, Aquaculture and Fishery Officer.

G) Once negative results have been obtained for Cochilomyia hominivorax, Chrysomya bezziana or other exotic plague, electronically by CENAPA and CNRF, the containers will be released.

H) If there is a presence of a borer of cattle caused by Cochilomyia hominivorax or Chrysomya bezziana or another exotic pest, the merchandise will be destroyed by the importer, in accordance with the provisions of section III of Article 45 of the Federal Animal Health Law.

11.- The product must be placed on pallets, otherwise, the import is not authorized.

12.- The shipment and / or documentation of imported products must comply with the provisions established in the Federal Animal Health Law, articles 24, 32 and the fractions of article 89 that are applicable according to the nature of the merchandise

13.- Compliance with the provisions of this document does not exempt the importer from presenting documents, complying with procedures and / or procedures required by other authorities.

AUTHORIZED ENTRY POINT (S)

AICM Cargo Customs, D.F .; Altamira, Tamps .; Cd. Acuña, Coah .; Cd. Hidalgo, Chis .; Cd. Juárez, Chih .; Guadalajara, Jal .; León Silao, Gto .; Manzanillo, Col .; Matamoros, Tamps .; Mexicali, B.C .; Monterrey, N.L .; Nogales, Son .; Nuevo Laredo, Tamps .; Piedras Negras, Coah .; Reynosa, Tamps .; Lieutenant López, Q. Roo .; Tijuana, B.C .; Veracruz, Ver ..
 

 

 

Truckers can make port appointments

The Wall Street Journal reported over the week end that a container terminal in New York Harbor is preparing to accept reservations for trucks to pick up or drop off cargo, in an effort to reduce congestion in the East Coast’s busiest port complex.

Starting on Jan. 15, truck drivers headed for the Bayonne, N.J., terminal operated by GCT USA LP will be required to make an appointment if they want to enter the terminal in the first couple hours after it opens each morning.

The goal is to eliminate the long lines of trucks that often queue up outside the terminal’s gates, clogging traffic in surrounding neighborhoods, slowing operations and raising costs for drivers.

Truck congestion plagues many busy ports nationwide, as cargo volumes rise and bigger ships make calls at U.S. ports. The biggest vessels require thousands of truck trips to carry containers to rail yards and warehouses.

GCT Bayonne is the first terminal at the Port of New York and New Jersey to require appointments. A handful of North American ports have adopted similar reservation systems, including cargo-handling facilities at Southern California’s two ports—the nation’s biggest—the Port of Oakland and Vancouver in British Columbia. The Port of Virginia has tested the use of appointments.

The appointment system is one of several measures GCT Bayonne has undertaken to streamline operations, including using remote-controlled cranes and other automation. The terminal handles the biggest ships that come to New York Harbor, though larger ships are expected to call on nearby terminals later this year, when the Port Authority is expected to complete the next phase in its project to raise the Bayonne Bridge.

Some truckers remain wary of reservation systems, saying they can experience glitches that cost time, and that they run the risk of missing appointments due to traffic and other delays outside drivers’ control. GCT Bayonne was supposed to start taking appointments in late 2015 but delayed the launch for further testing.

“Appointment systems have been tried at other ports, and they’ve been problematic, so our members are somewhat skeptical about the chances of it being successful here in New Jersey,” Jeffrey Bader, President of the Association of Bi-State Motor Carriers, said in an email. The group’s members helped GCT test the system.

Under current operations, truck drivers line up to enter container terminals and can then spend hours more inside going through checkpoints and maneuvering to drop off empty containers or pick up new loads—what truckers call turn time.

In Bayonne, turn time fell by 38% during a recent test of the reservation system, the Port Authority said. Starting on Sunday, only trucks with reservations can enter the terminal after the gates open at 6 a.m. until 7:45 a.m., and no queuing will be allowed, the Port Authority said.
 

 

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MARKET OBSERVATIONS

 

Today’s trend: Watching/waiting
 

  1. It appears that wet blue producers are more anxious than those who sell wet salted hides, to generate some volume this week.
  2. Will this be the week that will see a decent round of business? Some say that the need to act is building on both sides. We don’t have a good sense about the tanning fraternities needs, but we do feel that producers are going to have to generate some volume business at one price or another in the  near term.
  3. We are starting to see more steer offers at 64/66 lbs. as opposed to 66/68 lbs. as has been the case for the past several months. One producer is now offering hides into March and since hide weights normally drop significantly in and around mid April, these offerings weights are validation of how far forward this producer is on the appropriate selections.

 

 

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FEDERALLY INSPECTED SLAUGHTER

 

Today 111,000
Last week 116,000
Last year 113,000
Week to date 180,000
Last week 232,000
Last year 219,000

Monday’s Martin Luther King partial holiday slaughter included 54,000 steer/heifers and 15,000 cows and bulls.
 

 

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PRICES AT THE CLOSE OF TRADING

 

SELECTION WEIGHT PER PC FOB LAST WEEK LAST YEAR
Heavy Texas Steers 66-68  $71.00-73.00  $69.00-73.00 $62.00 – 63.00
Heavy Texas Steers (Heavy) 74-76  $73.50-74.00  $73.00-73.50 $66.00-69.00
Branded Steers 66-68  $64.00-65.00  $64.00-65.00 $61.00-62.00
Branded Steers (Heavy) 74-76  $71.00-73.00  $71.00-73.00 $65.00-$66.00
Colorado Steers 66-68  $63.00-65.00  $63.00-65.00 $53.00-54.00
Colorado Steers (Heavy) 72-74 – – –
Butt Branded Steers 66-68 $72.00-74.50 $74.00-75.00 $71.00 – 7100
Butt Branded Steers (Heavy) 74-76  $76.00 – 77.00  $76.00 – 77.00 $76.00-$77.00
Heavy Native Steers 66-68  $73.00 – 75.50  $75.50 – 76.00 $72.00 – 73.00
Heavy Native Steers (Heavy) 74-76  $77.00  –78.50  $77.00  – 78.50 $77.00-$78.00
Heavy Native Heifers 52-54  $57.50 – 58.00  $57.50 – 58.00 $58.00 – 60.00
Branded Heifers 52-54  $54.00 – 55.00  $54.00 – 55.00 $53.00 – 54.00
Heavy Native Cows 52-54  $43.00 – 44.00  $43.00 – 44.00 $45.00 – 46.00
Branded Cows 52-54  $35.50 – 38.00  $35.00 – 37.00 $33.50 – 37.00
Holstein dairy cows 52-54  $54.00-55.00  $54.00-55.00 $57.00- 59.00
Native Bulls 100-110  $52.00- 59.00 n  $52.00- 59.00 n $49.00 – 51.00
Spready Dairy Cows 50-52 $46.00-48.00
Over-weight Kip – –
Native Bulls 100-110 $47.00-50.00 n
Spready Dairy Cows 50-52 $46.00-48.00
Over-weight Kip – –
Native Bulls 100-110 $47.00-50.00 n

 

 

Don Ohsman

Don Ohsman

More posts by Don Ohsman

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