What happened this week: The slaughter industry has been pretty successful to move the market higher now, with a backdrop of generally shrinking supply. In complete ignorance of the general conditions and the economical situation in the leather industry, asking levels have been substantially increased at the abattoirs and obviously nobody is taking into account that the situation for European hides is not the same as it used to be some weeks ago. The impression that the debt crisis in Europe might be easing has given the Euro a lot of tailwind and the currency has actually gained almost 5% in little more than a week. 5% means about $3-$4 per hide which the market at the moment is hardly willing to pay.

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