What happened this week: The market continued to be stable and sales continued to normalize and pick up. As in many weeks before dairy cows and low grades dominated the scene with good demand seen again from the Far East. The rapidly falling USD was compensated by higher selling prices until a level of 1.05-1.06. Since it passed also this level the relative price increases were not anymore obtainable, so that Fridays export calculation began to become worse than a week ago although asking levels went up by a USD 1,00-1,50 over the week. Bulls sold reasonably well to regular clients at steady money. A bit worrying in this segment are the increasing offers seen from Eastern and/or South Easter Europe. One has to believe, that many sellers have stocked hides prior to Xmas in the expectation of higher prices in January

and are now surprised, that their ideas for higher prices might be disappointed. Well, so far they are still trying, but one cant see at present the demand for salted hides to justify the attempts. This might be also the result of better than expected kill of bulls in Western Europe which create at present adequate supply for male hides. During the week was the German cattle count for November 2002 released which showed a decline of 530.000 or 3,7 % vs. a year ago. With a reduction of more than 6 % on bulls one might not be worried for the moment, but for the coming months we have to expect less slaughter and availability of these types of hides. So, the idea was right to expect less hides, but the timing for the moment was reasonably poor. Results from the  shows were not very positive and the rising fear

for a war in Iraq is burdening as well. However, one continues to be impressed by the success of individual companies in the market, who still find customers and business enough to keep things moving. The kill: Continues to be above expectations and allows the trade to supply the present demand. Only the kill of dairy cows might require a little boost to keep markets in balance. We have to assume, that until the end of the months nothing much is going to change.  What do we expect? Cows will depend on the currency as the market seems to be safely fixed at present USD levels. Bulls will be quite interesting as we have to watch if the offers from Eastern Europe are going to come down in prices and might weigh on the market. Apart from this, the market is in a nice balance and should remain entirely stable until the next round of buying and selling beginning of February in Europe.