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Osterhorn,
Friday, 12.07.2019
Market Report

The US $ in EURO
1,1260


What happened this week?: With the start of the holidays in further parts of the country and the final weeks for the last ones to go it gets slower every week now. At least for those who had their main business in Europe. The leather business has lost so muc dynamic and excitement that it is almost impossible to aggregate much for something what should be called a weekly report. Actually we tend to believe most - like us - are just administrating the remaining base business which continue to be the bottom of the industry. All what has been predicted a long while ago has now become reality and the material flow of product in the pipeline is actually like  a river after a long drought. Many ships are sitting already on the sandbanks, many can already see that they are going to ground without a big and sudden rainfall and only the small ones with the best captains which know their way exactly continue their way.The main question is now if this summer season will be the bottom of the fall in leather demand or only another  temporary pause in an ongoing descent. Nobody knows it and everything is hypothetical, but it is at least feasable now to discuss if the trend could begin to phase out. There is certainly not too much hope for a swift recovery of leather demand in particular when we follow presently the latest news from the automotive industry. They had been misleading the public already for a while about the realities, but now the hope for a swift recovery of sales and demand are vanishing and so the production and profit forecasts have to be corrected with not many good news for leather demand. This means the main driver for raw material demand which we had in the market until 2018 is not going to deliver any new boost. With the size the automotive sector had reached in this millenium it is not so easy to compensate when this is lagging. In shoe it seems a that a certain status quo has been reached and can be defended and the good news are once again that the French luxury industry continues to believe in leather and  is still willing to expand their vertical integration with additional purchases of tanneries to secure know and manufacturing capacity. Leather is far from being 'out', but it needs from too much at the moment. There are also not so many people around who do not believe that they can get on spot whatever they would suddenly require in September. Trading this week was actually once again a carbon copy of the previous ones. Wherever delivery programmes of fresh hides until the holidays still needed to be renewed it was done. This was only topped up by once again selected interest from China for premium hides. For the premium quality it was also possible to get steady prices. For the rest and the simple bread-and-butter stuff the bits which we had seen were nothing else than not really serious and only the usual bottom fishing of the same usual suspects we know already for a long time.Consequently sales cannot be called fully sufficient. For the amount of business not even the recovering US dollar could offer much help, but these days even little is better than nothing. The Kill:  As far as the the kill is concerned there's really not much to report. In our region the school holidays have started and so are the numbers actually going now through the lowest period of the year. The cattle herd in Germany is falling by roughly 3% and also the kill has been down in the first half of the year in small single digit numbers. What do we expect: Actually we cant expect anythings else than the usual repetition of the same just with falling volumes. Little in Europe and from Asia we can only hope that tanners still need still  to replenish a bit


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 € 1,40
Weakish
  25/29,5 kg 27,5/28,5 kg 22/27 kg 25/26 kg € 0,70 Weakish

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 0,65

Weaker
 

25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 0,50

Weaker

30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 0,45

Weaker
Bulls 25/29,5 kg 27,5/28,5 kg 22/ 27 kg 25/26 kg € 1,20
Weaker
  30/39,5 kg 36,0/37,0 kg 24/34 kg 31/33 kg € 1.25
Weaker
  40/+     kg 45,0/48,0 kg 34/+   kg 38/40 kg € 1.10
Pressure
Thirds 15/+      kg 25,0/27,5 kg 13/+   kg 24/26 kg € 0,30
Weakish
Thirds bulls 30/+      kg 38,0/40,0 kg 24/+   kg 33/36 kg € 0,45
Weak





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