What happened this week: We are now entering the period where it is quite difficult to write a weeks market activity down – since there is very little except the regular operations which carry on throughout the year. And consequently our expectations for this week were fully met. Some more interest from the Far East for diary cows, but nothing like the previous weeks. For the moment it seems, that the immediate need for product is satisfied and with their main market – the USA -  being in holiday mood this week as well buyers were not really insisting in business as they were before. However, if one wanted further interest to be satisfied there were options at steady or slightly improved levels. The US price lists are supporting and the cow market remains solidly settled. The bull market remains apathic, because the market is not fixed on either side. Everyone is still waiting for the outcome of the abattoir negotiations and with opinions are drifting far apart it is very difficult.  

Buyers point on the low prices which were seen in the past weeks in various markets and claim now the full adjustment, while sellers are using the argument of settling world markets and lower kills. At the end the timing in front of the holiday season and a global economy still searching for the direction for the second half of the year couldn’t be worse to satisfy any party. In addition there is also a problem, that in South Germany the period for the abattoir contract is for three month what is in the present environment a very long period to cover. To commit for the future is anyway one of the biggest problems at present. Easily be seen, that hardly any buyer nor seller is willing to take decisions already for September (after the holidays). Basically buyers believe, that they can get hides cheaper again after the holidays or at least having more safety about their business situation, while sellers are convinced, that prices cant get any worse than now. In Europe there are still abt. 10-14 days to go to make the mind up, but then most of the trade will be on

holidays and will have to take it as it comes in September. Certainly there will not be too much of accumulation of hides over the summer, because most of the material is one or the other way already scheduled and disposable volumes will be small. The kill: As poor as it is for many weeks now. The low seasonal weights don’t make life easier. Everyone is now wondering, what the EU compromise for the subsidies will mean to the farmers and how they are going to react.  The logic for the months from August onwards remains, that some of the shortfall of the first half should be compensated in the second, but when has in this business ever anything followed the logic? What do we expect? The next weeks will get a bit more active again. One way or the other the trade will have to decide next week about prices and volumes and also the Asian tanners will have decide how they are going to follow the market in the coming months, because they will need hides, because the production season is also starting in that part of the world for garment and furniture. So, prices will stay in our view at least steady. 

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 1,70

Firmish

25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 1,44

Firmish

30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 1,23

Firmish