What happened this week: The pandemic has quickly returned to being the one and only headline in Europe this week. Rocketing numbers of cases and government actions have reminded people where we were just six months ago. All the scientific arguments have been aired, but psychology is some-thing that cannot be totally influenced. Governments are struggling to find an adequate balance be-tween restrictions and freedom. There is a risk that business and the economy, as well as social life, could be disrupted again.

We might not see full, countrywide lockdowns any more, but in a globalised economy supply chains can be disrupted because of corona cases in a particular place or the absence of people from work be-cause of quarantine. At this stage it is useless to discuss the long-term consequences such as unem-ployment and adopted lifestyles.

For the hide market, the level of concern is beginning slowly to trickle down. Not much has changed because it’s not that the fundamentals turn upside down in a week. However, the excitement and enthusiasm of the beef industry and their belief that the only way is up is beginning to show a few cracks.

The situation divided last week into two parts. In the beginning, the main focus was a conflict about prices at the abattoir door. The positive dynamic we have experienced in some market sectors since the end of the summer has generated an unquestioned optimism about the coming months. It is true that not much has changed at the moment, but the outlook has to be considered to be very uncertain now. Only China remains untouched as far as the domestic market is concerned.
For the business last week, things became increasingly difficult. Buyers from Asia were not willing to follow the weekly increase in prices and decided to pull out the moment anyone asked for further price rises, even those these were needed considering the price ideas of the meat industry.

In Europe the struggle to find an appropriate market price for heavy males continued. A wide divergence of opinions remains. Some say the need of tanners to buy will dominate; other buyers are quite convinced that, with the rising kill and adequate options and volumes, they can still refrain for a while.

The expected rise in the kill between now and Christmas and the changing mood, owing to the ongoing problems caused by the pandemic, could possibly play into the hands of the buyers eventually.

Sales this week were rather spotty. Sellers are not ready to give any price concessions yet and buyers are not willing to consider any further increases. With both sides not completely forced yet to take a decisions, the number of sales was limited. Prices were in very moderate ranges around the ones established in previous weeks.

The kill: Week by week the numbers are rising, although any big rise is still missing. Females con-tinue to dominate the mix and weights remain on the high side.

What we expect: It seems it will be a few more weeks before the stalemate ends and buyers and sellers have to take important decisions.

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