What happened this week: As anticipated, activity slowed down this week. This was probably not just the result of decreasing interest, but was also related to shortened offer lists. As we stated last week, it seems that most established sellers have concluded their business on dairy cows and are now fixing programmes with key customers for the coming six to eight weeks. Consequently there was not much left for non-regular customers. This situation paved the way for trader business and so most of this week’s activity was seen from traders asking for offers – either to cover existing sales or to stock up for the latent interest from Asia that is still circulating.

European activity was focused mainly on lightweight material and abattoir buying. For the rest of the trade, most people are waiting expectantly to see how the current market conditions influence standard business in bull hides in Europe. Abattoirs have already made their decisions and it is going to be tough to make ends meet in the near future. The market is beginning to enter a pretty difficult pattern now and the key question remains – at least for business into the Far East –as to whether all of the raw material that has been bought in the first quarter will be covered by finished leather contracts.

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