What happened this week: A week which was not particularly eventful. Business and sales were reasonable and again pretty much dominated by interest from China. European customers were on the sidelines and just bits and pieces were sold in the ‘old world’. As becoming a habit already interest was in particular for dairy cows and bulls, while demand for ox/heifers remained lackluster. This reflects basically the report one gets also from other markets. The enthusiasm some had, thinking that demand and sales would convert into higher prices got a damper. Hide prices remain capped and better returns had to derive again from a lucky hand on the currency market. Our long term opinion, that hide prices are frozen into a very narrow price band seems to remain valid – at least for the moment. Price movements were rather because of prices discrepancies between markets or currency fluctuations, than due to changes in supply and demand. And this applies already for more than three months now, except the very short movement triggered by the BSE case in the USA. Excluding this we haven’t had any major change in prices for a long time and the variations can really

be neglected – as far as one considers prices in €. We just have been lucky, that our hides have been globally  fairly adequately priced since October/November and can also be used in a large portion for the volume productions of furniture leathers in China what gave us the opportunity for regular and consistent sales and shipments for quite some time. Colleagues from other origins will not feel the same and this should be a good example for those who are getting optimistic for the market in the weeks to come. So, despite a good and regular clearance of production, time hasn’t been mature for higher prices. Markets which had outpriced themselves were immediately neglected. The price increases seen in Italy over the past weeks were rather just an adjustment of prices than a firmer market and so there was no reason to take a bet on the future and to call it a trend justifying the higher prices paid at the abattoirs. Leather business, or much more finished product prices do not lay the ground for higher raw material prices – yet. However, the move made at the abattoirs puts sellers now under the pressure to lift asking levels and it will be a tough fight to obtain at least part of the increases back from the market. In this respect it

is good, that we have the Lineapelle in front of us at the end of the month. In case, that we don’t see a firework of interest and tanners queuing up for hides at more money we have at least the chance to correct part of the mistakes again. In the meantime we have to try hard to keep sales and prices at best levels obtainable.  The kill: Total slaughter numbers were down due to the holidays. However, levels on a daily basis did not suffer as much as one was afraid of. So, the kill remains relatively steady and just the average weights are now accelerating their decent. Not helping calculations either. Spring has finally arrived and temperatures have increased sharply since mid week, what enables farmers to release cattle to the fields shortly. This should weigh on the cow kill. In addition it will be interesting to see, what the 01.05. brings when the new member states are going to join the EU market. What do we expect: Sellers will now fight for higher prices, but we feel. The success might be limited. Regular buyers can now show if they follow markets in both directions, while the ‘free market’ will just compare and take decisions on the day. So, the market will have a firmer undertone until Lineapelle, when we will know more. So, modest gains with little changes in the market sentiment and prices.

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 1,60

Steady

25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 1,38

Steady

30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 1,25

Steady