What happened this week: Finally it was one of the weeks with little activity all over. Just some sales on Thursday and Friday were able to avoid, that this would have been a week with no sales at all. So, the end of the week conciliated a bit for the non-event of the first three days. So the week left plenty of time to watch and play the currency market and who had some USD left to sell against previous sales of hides had another good chance to bolster the insufficient margins offered from normal trading at the moment. High volatility required, however quick action. As far as hide business was concerned the market was burdened by the carnival in many parts of Europe, the preparations for the next months abattoir buying and the general absence of Asian buyers until the end of the week. Reading the overseas reports one has to have the impression, that we are in the final phase of preparation in Asia for the trend of the market to come. The supply pipeline is getting shorter and shorter for many tanners, but same applies also for many sellers and so it seems, that the showdown cant

be too far away. All this however, applies only to the Far East. In Europe one has the impression, that most tanners are adequately covered at present and in some cases even overstocked with standard materials, because they bought in expectation of better leather orders in the first quarter, which – in many cases – did not appear. In any case the structural crisis in Europe continues and also more and more stories about financial problems are circulating as well. The tremendous sales and export figured published from the USA this week supports our long term opinion, that leather business is not bad and again large sellers and buyers used their market position to do their own and private commerce taking ‘the trade’ for a nice ride.  The total number will be true and how the reporting has been put together might be of general interest, but for the market situation it changes very little. The facts are enough. Sales this week were again concentrated on dairy cows but also some patchy sales of bulls were concluded to the Far East. Slowly, but surely the bullhide is finding more and more regular homes in Asia and it does not need too much optimism, that soon it will

be a standard item also to that destination. This will definitely change the trading pattern in this particular item a lot. Prices were just about steady. Again moderate declines in USD terms took place, but were again fairly well compensated by the currency market and so was the net revenue close to last weeks levels. Something has now to be done in next months abattoir buying as margins – in particular in bulls – are not sufficient and need to be corrected by lower abattoir prices. The kill: In the ‘carnival regions’ pretty low and in the others normal which consolidates in a net decline of about 10-15 % in total. Many expect lower kills also in the weeks ahead. What do we expect: Well, our market remains commanded by the Far East and the currency. We have now to see, what the market reaction in the USA and in Asia next week is going to be after the great news of this week. If it is not for the good, it will however lift some of the latent pressure from the market. Those who still carry a short position might be forced to cover. So, the market volatility is going to increase, but we also still fail to see a real chance for higher prices in the short term. Consequence for the next week. Pressure lifted, but no reason - yet - for rising levels.

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 1,65

Steady

25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 1,39

Steady

30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 1,27

Steady