What happened this week: The focus last week was on rising numbers of covid-19 cases and the presidential elections in the US. People may have become excited about the results of the election, but day-to-day life is being determined by the pandemic. Most of Europe is once again in something close to lockdown and in several regions the numbers of infections are becoming frightening again.

Politicians have been trying to use lockdowns as a fire-break; we will only know if this has worked when we see the trend of infections a week after the decision. In the short term no immediate reversal of the situation can be seen so far.
Of more influence on business at the moment is the result of the US elections. A tight race paralysed a lot of the commercial activity around the globe and this included the hide market. In particular, Chinese customers almost completely disappeared. One came to the conclusion that their appetite for hides was not so big that they were willing to take decisions before knowing who it is their government will have to deal with in future.

In our part of the world, the hide market was restricted by new abattoir prices for November. Ten days or so ago the trade was still full of excitement and so was the slaughter industry. However, the enthusiasm has begun to fade. In particular lightweight hides and cowhides have not been able to generate excitement. 

For heavy males the market continues to be reasonably in balance, but there has never been any justification for the peak prices that have been quoted in some of the international reports. Prices went up a bit, but by far less than some people thought. This is good news, because we are certainly still not on safe ground as far as production is concerned.

For us sales were limited to the renewal of the regular programmes in Europe. Asian interest was basically inexistent. Agents were asking for offers, but never came back with anything serious. 

The kill: The kill continues at reasonable but not exciting levels. The lockdown is having its effect and capacity is limited. The weather is still reasonably warm and freezers remain well filled. The pandemic has had a massive effect on beef production and consumption and where the trend is going remains totally unclear. 

What do we expect: Next week the Asian buyers should be more visible again. Everyone is now trying to get a grip on the balance of supply and demand for the coming months, including the upcoming holidays. Tanners have to rush yet.

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