Friday, 16.07.2021
Market Report

The US $ in EURO

What happened this week: We are now fast approaching the peak of the holiday season. In a few weeks the first school holidays will end and the last ones in the Southern parts will begin. In addition to the schools, however, the manufacturing sector is facing the company holidays. For the first three weeks in August, almost all businesses are closed. As always, this triggers different developments in our market. On the one hand, the companies here are planning the last productions before the holidays and also the first for the time after. Some contract tanners remain open and with clever use of capacity across the EU, some large operators can also process goods during their holiday weeks. Slaughter numbers have fallen significantly, so the supply of goods is not causing much selling pressure at the moment. This means that the market for heavy goods in Europe is apparently largely in balance, even during the summer period. The customers in Asia obviously found that their strategy of staying away from the market for a longer period of time and waiting for unsold volumes and the holiday season to build up greater sales pressure on European suppliers was not crowned with the same success this year as in many years in the past. Already a few weeks ago, attempts had been made to put pressure on prices and to push cowhides back to the price level of the beginning of the year with low bids. There were isolated deals at significant discounts, but this was only of very short duration. In the meantime, prices for cows have risen again to US$ 40 (cif China) and   more, without very much commodity being available. The price-sensitive buyers in China have tried to switch to lower value hides in the last few weeks and this week we could also see a lot of bidding. One of our colleagues noted that he could have sold the few quantities available ten times over. We can only confirm this with our experience this week. More expensive goods at the normal market prices, on the other hand, did not attract much interest. The heavier the hide and the more expensive the unit price, the fewer sales opportunities there were in Asia. This teaches us once again that in the end, even after many years of development of the Chinese leather industry, it is still almost exclusively the price and nothing else that influences the buying decision. Higher quality leathers at significantly better than average market prices are still hardly or almost not at all for sale in China by the local tanneries. Thus, general activity remained rather manageable this week. Sales were almost exclusively concentrated on regular buyers in the European Union and only a few containers for low grades were sold to Asia. Overall, the volume of sales remained sufficient to essentially place the current hide production. There were only insignificant changes in prices, with slight increases in super-heavy male,high-value goods and otherwise almost completely unchanged price levels. Overall, it gives the impression that at the moment, due to many factors of uncertainty, everyone is happy with a period of stability. This means that the phase of the usual summer calm is now beginning, which could only be interrupted by possible next rounds of activity from Asia. However, it is already noticeable that many customers in Asia are giving a lot of thought to their export business and the corresponding logistics. Processing orders on time today is a task that is almost impossible to plan. The Kill: The kill fell significantly again last week. It gives the impression that restaurants and supermarkets had stocked up too optimistically and that current consumption is not sufficient to justify major additional slaughtering activity. Further developments in the Corvid-19 figures and, of course, the terrible events in the flooded areas will certainly have a major impact on meat production in the coming weeks. We do not expect production to increase before mid-August. What do we expect: Attention will also turn back to customers in Asia in the coming weeks. Only they are or would be in a position to trigger serious price movements on the markets in the coming weeks. It does not seem at all that customers in Asia can see any justification at the moment that would allow them to pay the current price levels or even higher. Consequently they pick around the globe the adequate offers and wait that hopefully the market swing back into their price range.  In our view, it would therefore not be surprising if a certain agony were to take hold in the markets in the coming weeks, because we fail who could be the one to react first to try to set new levels.

Type Weight range Avg. green weight Salted weight Avg. weight salted Price per kg green weight
Ox/heifers 15/24,5 kg 22,0/23,5 kg 13/22 kg 20/21 kg € 1,20

  25/29,5 kg 27,5/28,5 kg 22/27 kg 25/26 kg € 1,15

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 1.00


25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 0.95


30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 0.90

Bulls 25/29,5 kg 27,5/28,5 kg 22/ 27 kg 25/26 kg € 1,20
  30/39,5 kg 36,0/37,0 kg 24/34 kg 31/33 kg € 1,50
  40/+     kg 45,0/48,0 kg 34/+   kg 38/40 kg € 1,50
Thirds 15/+      kg 25,0/27,5 kg 13/+   kg 24/26 kg € 0.60
Thirds bulls 30/+      kg 38,0/40,0 kg 24/+   kg 33/36 kg € 0.55

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