THE DAY AT A GLANCE
- Weak interest
- Branded steers $25.50
- Butts $30.00
- China has new variant Covid wave
- Latest US drought monitor
- Combined export sales 556,900
- Combined shipments 638,100
- Combined outstanding 3,927,700
- Today’s trend: Still steady at best
BRANDED STEERS
- 62/64 lb. brands sold for $25.50.
BUTT BRANDED STEERS
- 62/64 lbs. sold for $30.00.
HOLSTEINS
- 50/52 lb. dairy cows sold for $15.00.
INDUSTRY NEWS
China has new variant Covid wave
NBC
China is bracing for a new wave of Covid infections that could see as many as 65 million cases per week by the time the surge peaks at the end of June, reports NBC.
Only months ago, the country had enforced some of the harshest Covid control protocols on the planet. Now, with the latest omicron variant, XBB, fueling a resurgence in cases, the response from China’s government and the public is muted at best. This is about six months after the country dismantled its infrastructure for dealing with Covid.
Respiratory disease specialist Zhong Nanshan told a medical conference this week in Guangzhou that the wave started in late April, but was “anticipated.” By the end of June, he said, the weekly number of infections will peak at 65 million.
By comparison, the US was reporting more than 5 million cases a week at its peak last January. Like the U.S., China ended weekly case updates this month.
The State Department said the US was discussing China’s second Covid wave with allies and partners but declined to say whether travel restrictions were under consideration, reports NBC.
Experts suggest the U.S. already has a strong level of immunity against the highly transmissible form of the virus.
Latest US drought monitor
EXPORTS
Raw hide sales up by 8%
Net sales of 451,000 pieces for May 18 were up 8 percent from the previous week’s 419,000. Two weeks ago, sales were 598,400.
Destinations were:
| China | 339,100 |
| Mexico | 51,100 |
| Korea | 34,300 |
| Thailand | 18,700 |
| Turkey | 4,600 |
| Indonesia | 2,100 |
| Ukraine | 1600 |
| Taiwan | 200 |
| Brazil | -200 |
| Italy | -400 |
Shipments of 492,600 pieces were up 42 percent from the previous week’s 346,400. Two weeks ago, shipments were 366,800.
Wet blue sales down by 42%
Net sales of 105,900 wet blues for May 18 were down 42 percent from the previous week’s 181,300. Two weeks ago, sales were 56,800.
Destinations were:
| Italy | 57,200 |
| Vietnam | 18,300 |
| China | 10,000 |
| Mexico | 8,900 |
| Thailand | 8,000 |
| Korea | 2,700 |
| India | 900 |
Shipments of 145,500 wet blues were up 17 percent from the previous week’s 124,200. Two weeks ago, shipments were 119,400.
MARKET OBSERVATIONS
- Sellers say that interest remains weak with customers bemoaning plentiful inventories and a lack of orders, particularly for footwear. Still, some producers say that the volume of interest was a little better today than yesterday.
- A number of tanners have said they are sitting out the market.
- Only packers are reporting prices fully steady and in some cases slightly higher. For everyone else, steady is a good deal this week.
- Automotive demand is poor again this week as buyers hold back.
FEDERALLY INSPECTED SLAUGHTER
| Today | 125,000 |
| Last week | 125,000 |
| Last year | 122,000 |
| Week to date | 498,000 |
| Last week | 504,000 |
| Last year | 497,000 |
Wednesday’s slaughter included 94,000 steers/heifers and 28,000 cows and bulls.
PRICES AT THE CLOSE OF TRADING TODAY
| ELECTION | WEIGHT | THIS WEEK | LAST WEEK | 4-WEEK AVG | LAST YEAR |
| Heavy Texas Steers | 62-64 | $21.00–22.00 | $21.00–22.00 | $21.88 | $22.00–23.00 |
| Heavy Texas Steers (Heavy) | 74-76 | $28.00-29.00n | $28.00-29.00n | $28.50 | $28.00-29.00 |
| Branded Steers | 62-64 | $22.00-25.50 | $22.00-25.50 | $23.75 | $22.00-25.00 |
| Branded Steers (Heavy) | 74-76 | $27.00-28.00n | $27.00-28.00n | $27.50n | $27.00-28.00 |
| Colorado Steers | 62-64 | $23.00-24.00 | $22.00-23.00 | $23.13 | $21.00–22.00 |
| Butt Branded Steers | 62-64 | $29.00-30.00 | $28.50-30.00 | $29.31 | $27.00–29.50 |
| Butt Branded Steers (Heavy) | 74-76 | $33.00–34.00 | $33.00–34.00 | $31.50 | $38.00–39.00n |
| Heavy Native Steers | 62-64 | $32.00-33.00 | $32.00-33.00 | $33.00 | $37.00-38.00 |
| Heavy Native Steers (Heavy) | 74-76 | $36.00-37.00 | $36.00-37.00 | $45.75n | $42.00-43.00n |
| Heavy Native Heifers | 52-54 | $22.00-23.00 | $22.00-23.00 | $22.50 | $27.00-28.00 |
| Branded Heifers | 50-52 | $18.00-19.00 | $18.00-19.00 | $18.00 | $17.00-18.00 |
| Heavy Native Cows | 50-52 | $10.00-11.00 | $10.00-11.00 | $10.50 | $10.00-11.00 |
| Branded Cows | 50-52 | $6.00-7.00 | $6.00-7.00 | $6.50 | $6.00-8.00 |
| Holstein dairy cows | 50-52 | $14.00-15.00 | $14.00-15.50 | $14.63 | $14.00-17.00 |
| Native Bulls | 100-110 | $11.00-12.00n | $11.00-12.00n | $11.50n | $11.00-12.00 |
