July 14th

Leather and Hide Weekly

The Leather and Hide Council of America (LHCA) continues to monitor developments related to the COVID-19 pandemic, and is available to support members navigating this rapidly evolving situation. Also, the Office of the U.S. Trade Representative (USTR) announced 25% tariffs on leather handbags from France in retaliation for the country's Digital Services Tax scheme, though USTR intends to defer the duties for up to 180 days. More on these and other topics below.

We hope you stay safe and healthy.

 

cows

 

Weekly Hides and Skins Stats 

  • Net sales of cured cattle hides reported for the period ending July 2 were 630,100 pieces and of wet blue were 33,300 pieces. Reported shipments of cured hides were 516,900 and of wet blue were 46,700. 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 664,000 last week, up 12 percent from the previous week. Total cattle slaughter in 2020 is 16,516,000, 5.6 percent below 2019 levels. See more.
  • USDA AMS Major Packer Hide Price Report provided prices for four types of U.S. hides at five price points with a spread of $11 for heavy Texas steers to $25 for heavy native steers.  See more.

Industry Updates

  • The North American Meat Institute continues to share guidance documents and other resources for industry on its COVID-19 response webpage. The page includes the latest guidance from the Centers for Disease Control and Prevention (CDC) regarding face coverings, employee screening and positive test result protocol, among other pertinent resources. CDC and the Department of Labor issued guidance specific to the meat and poultry processing industry in order to facilitate ongoing operations and support the food supply, while also mitigating the risk of spreading COVID-19. The guidance is available here.  

 

cows

 

Other Trade News

  • The Office of the U.S. Trade Representative (USTR) announced plans to levy additional 25 percent duties on products from France, in response to the country's Digital Services Tax, but said it would defer those tariffs while France defers tax collections from U.S technology firms. Under this action, French handbags, including ones made of leather and exotics, would face 25 percent tariffs, though USTR is suspending application of the duties for a period of up to 180 days. In March 2019, France proposed a 3 percent levy on revenues that companies generate from providing certain digital services to, or aimed at, French users. More information about USTR's action is available here. 
  • Trade officials from the U.S. and Kenya last week launched the first round of free trade agreement negotiations between the two countries. U.S. Trade Representative Robert Lightizer and Kenya Cabinet Secretary for Industrialization, Trade, and Enterprise Development Betty Maina issued a joint statement marking the launch of the negotiations. In May, the Office of the U.S. Trade Representative issued a summary of the U.S.'s negotiating objectives, which address both tariff and non-tariff barriers. 

    

Monthly Drought Monitor - July, 2020

 

U.S. drought Map

A trough of low pressure over the West kept much of the Northwest and Southwest unseasonably cool for early July, while high pressure, high humidity, and stalled or slow-moving fronts were the focus of scattered showers and thunderstorms across most of the Plains, middle and lower Mississippi and Tennessee River Valleys, the Southeast, and along eastern sections of the mid-Atlantic and New England. The greatest weekly totals (more than 2 inches) fell on the Dakotas, western part of Illinois, Kentucky, and Tennessee, the lower Mississippi Valley, and along the eastern two-thirds of the Gulf and the southern Atlantic Coasts (including Florida). Light to moderate amounts (0.5-2 inches) were reported from western Washington eastward to western Minnesota, throughout most of the Plains and Southeast, and in eastern sections of the Northeast. Little or no precipitation fell on most of the Far West, Southwest, southern Texas, the Corn Belt, and western portions of the mid-Atlantic and New England. Temperatures averaged above normal east of the Rockies, especially in the Northern Great Plains, upper Midwest, and Great Lakes region that saw weekly departures of +4 to 10 degrees F. Temperatures averaged close to normal in the Southeast and lower Mississippi River Valley where frequent bouts of rain and clouds kept readings down. In Hawaii, windward shower activity increased later in the period, but was not enough to make any major improvements. Subnormal rainfall continued across Puerto Rico except in northwestern sections of the island, deteriorating conditions across eastern areas. In Alaska, light precipitation was measured at most stations, but a dry June around the Kenai Peninsula area warranted some D0 in southwestern Alaska. 

Latest Updates from Real Leather. Stay Different.

westwood

 

From bespoke jackets to monogrammed phone cases to handmade board games, leather has always been the mark of the individual -- a perfect material to customize and make your own. Check out some of the ways to make that favorite leather piece of yours a true original. Also, get the latest Real Leather. Stay Different. Global Student Design Competition news here. And, don't forget to:

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.