What happened this week: It was again one of these weeks where one is asking himself at the end, what it really was. The main impression left – it was difficult. Mainly the customer base in Asia started to dig the heels in, feeling to have a fair chance to drive the market further down. With the ups and down of the USD there were good and bad moments and at the end quick reactions and a lucky hand on the currency market decided once again about the good and the bad. So bids were enough around, but trading was disorderly. The orders given were withdrawn, altered, terms changed and it was quite difficult to lead the trading to an appropriate finish. All this is – as usual – sign of buyers uncertainty  and not a solid base for business. However, adding at the end of the week what was captured in the net it ended in surprising and satisfying numbers. It was certainly one of the better weeks this year as far as number were concerned. However, one had to give further way on prices for dairy cows and ox/heifers if the target was to sell. A bit was compensated by the currency market, but still we see a net erosion of prices of a couple of

percent. European sales were mostly again to the regular buyers and also here minor price concessions had to be made, where adjustments were adequate to keep trading on a fair base. The main reason for the returned pressure on prices remains the poor business in the South of Europe. More and more sellers need to find new markets, because they don’t believe anymore in the recovery of the traditional European markets. And they might be right as the season is already fairly well advanced and one has to wonder how it can still improve. So one sees more and more offers made from mainly South Eastern Europe from sources which mainly delivered into Italy and Austria. ‘Klondike’ for export traders buying the hides cheaply re-labelling them and selling them at discount prices to Asia and here in particular to China. This is one of the reasons – beside the shaky market in the USA – why Asian buyers are confused with the widespread price levels they get offered from Europe at the moment. Chinese visitors during the week confirmed, that upholstery tanners are very busy, shoe tanners are pretty mixed and bovine garment tanners are not not very happy at the

moment. However, with all concerns hides bought are still asked for very quick shipment what does not leave the impression, that tanners inventories can be very high and their stock position has to be pretty tight. So any change in teh order situation is immediately reflected in the buying attitudes.  The kill: The kill was slowing down again. Not a surprise with carnival ahead of us. Many sources report now, that they expect the slaughter to fall sharply by end march, when supporting factors (milk quota and subsidies for males) are finishing. What do we expect?: A certain pressure on the market and prices can not be ignored anymore. It is too early to decide if this is a new trend or just a normal market fluctuation.  We feel that hides are adequately priced and not far below present levels is a massive interest to buy from Asia. As usual they all want to get it right now and to balance for the expensive hides they bought during the BSE hype. And as usual it will not work for everyone who is too greedy. However, for the coming week or two we assume that the pressure on the market will persist before enough sales volume will finally draw the attention to the fact, that hides are not expensive at the moment. It will still take a while until the flow of hides is redirected where they are needed.

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 1,65

Softer

25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 1,39

Softer

30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 1,27

Softer