Friedrich Sturm Report - 24.03.06
What happened this week: This week was yet another when the weekly review could be passed over. As most of the trade will assemble in
Most of the immediate needs for sales have been made and we have to assume that our colleagues also have clean books for the weeks ahead. Consequently most sales and negotiations have been isolated to gaps in the production programmes of tanners and some short-term availabilities deriving from a slightly higher than anticipated kill this week. So, sales were generally patchy rather than the large deals that dominated the market weeks before. The question now is what would happen if somebody dared to put forward a proposal for larger quantities and an extended shipping period. It does not appear that any sellers have had the courage to take this chance.
Was it for the replenishment of inventories, speculation on higher commodity prices, local tax issues (in
So, if, for the past few months, we have been dealing with what is set to continue in the future, we must concentrate on what is to come and have to evaluate if it is realistic that the demand for finished leather will continue to be as strong and see whether tanners will take the same raw material position again for the next quarter. This applies in particular for the non-programme buyers of course. Considering it in terms of the normal annual cycle, it would come as a surprise if demand continued at this level, but without surprises life would be boring.
As far as sales for the week were concerned, everything that was offered was sold at asking levels. As the offer list wasn’t too long, sales were not particularly impressive. The interest in snapping up whatever was available continued and it seems that this will apply for the weeks to come. The firmer US$ also helped to close the gap on price ideas.
The kill: Last week the kill was better than expected and the numbers went up by almost 10%. Abattoirs are reporting good beef business and are finding it harder to get cattle rather than to sell beef. Prices have gone up on average and it seems that the media hype over bird flu has worked in the beef industry’s favour this time. This week, however, the kill slowed again and fell back to the levels seen in previous weeks. With the weather now finally starting to get warmer and Easter ahead of us, the kill should ease back a little in the weeks to come.
What do we expect? Anything other than steady would be a surprise. Only a few uncovered tanners could cause a shock as they would have to pay more. Any real new trend, if any, should establish itself within the month of April.
Type
Weight range
Avg. green weight
Salted weight
Avg. weight salted
Price per kg green weight
Trend
Ox/heifers
15/24.5 kg
22.0/23.5 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
€ 1.48
Steady
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
€ 1.37
Steady
30/+ kg
33.5/35.5 kg
27/+ kg
29/31 kg
€ 1.27
Steady
Bulls
25/29.5 kg
27.5/28.5 kg
22/ 27 kg
25/26 kg
€ 1.62
Steady
30/39.5 kg
36.0/37.0 kg
24/34 kg
31/33 kg
€ 1.52
Steady
40/+ kg
45.0/48.0 kg
34/+ kg
38/40 kg
€ 1.42
Steady
Thirds
15/+ kg
25.0/27.5 kg
13/+ kg
24/26 kg
€ 1.20
Steady
Thirds bulls
30/+ kg
38.0/40.0 kg
24/+ kg
33/36 kg
€ 1.20
Steady
