What happened this week: The mindset for the week was basically one of Christmas and year end preparations. Business expectations were very low and – as usual – the opposite was true. Sales and interest were still quite active and even today (December 23) produced a very satisfying round of business. Again business was concentrated on bulls, kips, calf, ox and heifers. Interest in dairy cows was there and even in good volume again, but the weak US$ and low bids in €s made only a handful of sales possible. However, if one was willing to discount the market for January, a pretty large volume of sales could have been concluded and the bottom line was that if people are willing to buy it now, they will still need it in January. If the market continues to head further south, then it is more than likely that the same prices bid today will also be obtainable after the festive season. However, the biggest threat to the market remains the currency. The US$ hit another record low today. The financial markets can only find arguments for a further decline in the first quarter 2005 and this could eventually become the killer for the price trend in € terms. A US$ collapse can no longer be ruled out and the consequences will be dramatic for global economic stability and for the hide and skin business – at least in the non-US$ regions of the world.

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