June 22, 2021
Leather and Hide Weekly
Last week, we alerted you that the House Subcommittee on Coast Guard and Marine Transportation held a hearing with commissioners from the Federal Maritime Commission and other witnesses to learn more about disruptions at U.S. ports and within the shipping industry. During the hearing, there were bipartisan calls to address impediments facing U.S. agricultural exports, including unchecked ocean carrier practices. Plus, the 2021 Real Leather. Stay Different. International Student Design Competition will soon crown a winner, as the contest enters its final days. More on these and other topics below.
Weekly Hides and Skins Stats
- Net sales of cured cattle hides reported for the period ending June 10, 2021, were 240,900 pieces and net sales of wet blue were 62,900 pieces. Reported shipments of cured hides were 355,800 and of wet blue were 191,700. China was the largest buyer of cured hides and Vietnam was the largest destination for wet blue. See more. For historical data, click here.
- U.S. Cattle Slaughter was 663,000 last week, a decrease of 0.3 percent from the previous week. Total cattle slaughter in 2021 is 15,415,000 head, up 5.6 percent from the same period in 2020. See more.
- USDA AMS Major Packer Hide Price Report provided prices for 11 types of U.S. hides at 17 price points with a spread of $21 for branded southwest cows to $60 for heavy native steers. See more.
- The USDA price report is a snapshot of the market. For real time hide market prices, please consult our friends at Hidenet, The Jacobsen, The Maxfield Report, or The Sauer Report.
Industry Updates
- The U.S. Sustainability Alliance recently featured in its newsletter LHCA-commissioned research titled, "Quantifying the relationship between U.S. cattle hide prices/value and U.S. cattle production," which found that leather production is a by-product of meat and dairy production and exerts no direct influence on cattle numbers. According to the report, if people stopped buying leather, it would lead to the burning or landfill disposal of more than 33 million unused U.S. hides, which would in turn generate more than 750,000 tonnes of CO2 emissions annually. LHCA published the research in May 2021. Read more here.
Latest Updates from Real Leather. Stay Different.
Last week, Real Leather. Stay Different. announced the 10 finalists for its International Student Design Competition out of more than 400 entrants, spanning from Argentina to Vietnam and Estonia to Sri Lanka. The finalists' designs, selected by a world-renowned judging panel, range from leather patchwork jumpsuits, molded handbags and delicate jewelry to structured leather overcoats, intricately stitched jackets and extravagant hats. Before a final winner is selected later this month, we thought we'd share a few stand-out designs with you. Check out the creative works of finalists Chloe Twigg, Yang Shen and Jonathan Ferris. Get the latest news from Real Leather. Stay Different. here. And, don't forget to:
Other News
- The House Committee on Transportation and Infrastructure's Subcommittee on Coast Guard and Maritime Transportation last week held a hearing to examine the ongoing shipping crisis and challenges at U.S. ports. Video of the hearing, titled Impacts of Shipping Container Shortages, Delays and Increased Demand on the North American Supply Chain, is available here. There was bipartisan support to address current challenges facing U.S. agricultural exporters and to hold ocean carriers responsible for their nefarious activities. In advance of the hearing, LHCA worked closely with the Agriculture Transportation Coalition to develop legislative proposals aimed at strengthening the enforcement of the Federal Maritime Commission's (FMC) detention and demurrage rules, maintaining carriage of U.S. exports and adding resources to FMC's Office of Consumer Affairs and Dispute Resolution Services. LHCA also consulted the North American Meat Institute on written testimony submitted to the hearing record. Following the hearing, the Journal of Commerce reported that Reps. Dusty Johnson (R-SD) and John Garamendi (D-CA) are preparing legislation that would give the FMC greater authority to enforce complaints against ocean carriers that refuse to carry U.S. agricultural exports.
- The Office of the U.S. Trade Representative announced that the U.S. and European Union (EU) have agreed to take steps to resolve their longstanding dispute over civil aircraft subsidies. The two sides have negotiated a five-year suspension of tariffs currently in place as they work to achieve a broader agreement on issues related to the subsidies. The U.S. and United Kingdom earlier this year also removed duties associated with this dispute. Meanwhile, the U.S. and EU are establishing a working group to assess Section 232 steel and aluminum tariffs and retaliatory measures, as the two sides aim to engage more closely on trade and economic matters.
Monthly Drought Monitor - June 2021
Warm and dry conditions dominated the West, while the southern Plains and South recorded the most precipitation for the week along with cooler than normal temperatures. Temperatures were 3-6 degrees below normal over much of the southern Plains and into the lower Mississippi Valley. Warner than normal temperatures dominated from California to the Dakotas with departures of 9-12 degrees above normal and even higher in the northern Plains. With the active pattern continuing over the southern Plains, conditions have flipped over the last several weeks from one of drought to ample precipitation. A reassessment of conditions in several places in the West and northern Plains led to improvements, in light of some of the wetter conditions recently.
Leather News
Each week, we will share relevant leather news below. Some of the articles may cover our products, and the industry, unfavorably, but we still believe it is important to share the different ways in which leather is presented in the media. If you find articles that you would like to see included, please send them to mschumpp@meatinstitute.org.