What happened this week: The week was again reasonably quiet, although activity was indeed better than in the previous one. Most of the inquiry was again for dairy cows and in particular from European export traders who desperately tried to cover shorts for immediate delivery. At least in our case without any chance to be delivered as the kill remains low and did not create any surplus and active opening of Letter of Credits against existing contracts is absorbing the present production quickly and readily. So, we could not be of any help. For the first time since long there was also decent interest for low grades again and we assume, that also these will finally end up in Asia. Regular overseas buyers were also present and asking for offers. Since most market reports and international traders have now decided, that they believe in lower prices for the coming weeks and speculate on buying opportunities again, found our higher asking levels little response so far. As usual has the

USD 50,00 mark has proved again to be a major obstacle. However, the stronger USD during the week was also already helping a lot and allowed to book some of the orders which were close to our ideas. Within the few orders coming in during the week where also some for ox/heifers from less regular overseas buyers and also here smaller volumes were quickly snapped up by buyers who obviously had to fill some production holes. Also some light weight kips and calf found surprisingly homes. The bull market was again boring. Sales to regular buyers were effected although some were left over for the coming week. The customer base was divided into those who already understood, that the time of further declines is over for the time being and sales were relatively quickly concluded at steady or fractionally higher prices. The others were ready to fight and tried their very best to see if and what they might still get out of the suppliers pocket. So far nothing and no success and these negotiations have been carried over into the next week. A bit different was the situation

for the South German material were the extend of the decline was the core of the discussion as they had to cover the period for the last two months. Summarizing the situation remains the market divided into the European and Asian one. While Europe remains depressed is the Asian situation visibly better. . The kill: Another week with exceptional low kills. Renewed forecast for the year 2003 by official authorities still estimate a decline of only abt. 2 % for the year. Even if we want to reach 5 % still, it would require a massive improvement of slaughter after the holidays. For the moment, however we don’t see any increase at all. What do we expect? We think, that there is still a very good reason for prices not to change except due to currency fluctuations. Bulls will settle around steady money eventually and cows will also not move any higher as sellers will not sell any cheaper and buyers will not pay any more - now! So, trading will be sporadic and at present levels. For any bigger changes we would need a major change on the supply or demand side. Not  really in sight for the moment.

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 1,70

Steady

25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 1,45

Steady

30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 1,26

Steady