Friday, 31.07.2020
Market Report

The US $ in EURO

What happened this week?: The holiday season has now finally started for most. While in the previous weeks still a lot of standard activity like shipping and administration  took place things slowed significantly down this week. Offices are shut down or just running with very limited staff and most drums had their final turns. Selected and isolated operations are still running and will also in the coming weeks, but this is not really filling the working days of the offices. In the warehouses the situation is a bit different and even worse than in the previous years. The slaughter is pretty much the same as always and with less hides shipped fresh, chilled more hides have to be salted, packed and stored. Pending sales to Asia can not be shipped with the normal simplicity due to reduced shipping capacity and this means that a normal weekly flow of hides is also not always and for every week guaranteed. The holiday season is now dominating everything and this means that also the rising infection rates around the globe are moving into the background. From all what we see one has to acknowledge that easing and travel push the rates all over hgher again. Slowly the consequences of the lockdown are beginning to reflect in the data statistics. Considering that a lot has been buffered by government action one has to get a bit frightend for the rest of the year - if the pandemic is handled in the same way as it has been done so far. As concerning it is and as lethal it might be at the end it is pretty obvious that the global economy, companies and individuals can not handle an extended period of activity. A number of countries claim that they are going to dispose of a vaccination pretty soon what would be appreciated, but scientifically it is pretty unlikely to be seriously possible and safe at the same time. This leaves just the option to try and to organize life as many do already. Simply taking the maximum personal care, individual precautions and working conditions to protect everyone in the best way possible.The earlier the better. In the meantime we have to assume that business will after the sharp break in the second quarter return to more normality. This is going to begin in September and how far it is going to lead us we will know by the end of the year. There are a few obstacles on the road. The presidential election in the USA and possibly also other issues in politics which may have also direct influences on the economy like we can see it presently already with the free fall of the greenback which is dropping like a stone after it is obvious that Mr. Trump is losing control of things in many ways. Business and sales this week were once again difficult. In particular the high volatility in the currency markets make negotiations very difficult. After a number of weeks were the clients in China were just focussed on price and looking for the cheap bargains the interest this week swung back to quality. All bids seen this week were just for the top end of the quality range for upholstery leathers. The goods news is that tanners are still showing interest the bad news is that the currency kills the return in EURO. In Europe we failed to find any serious interest and so we were left with the dripping sales to the few operators still moving forward. There is little hope and optimism that in our region anything can change to more activity and courage with the holidays and high level of uncertainty all over.  The Kill: The kill maintains on very stable levels when we consider that we are now in the peak holiday season. In the next two weeks the Northern parts of the country will return to work and we should slowly begin to raise slaughter numbers again. The weights of all categories remain well above the standard levels of the season.  What do we expect: We think that politics, the Corvid-19 infection numbers and the  financial markets will rule the trade in the coming weeks. Generally we had become a bit more positive after the complete slump before, but with the latest developments one has to get a bit more cautious again. There is s till a bit of time until final decisions have to be taken and we think this time will now be taken.

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 € 1,00
  25/29,5 kg 27,5/28,5 kg 22/27 kg 25/26 kg € 0,55 Steady

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 0.50


25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 0.45


30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 0.40

Bulls 25/29,5 kg 27,5/28,5 kg 22/ 27 kg 25/26 kg € 0,65 Pressure
  30/39,5 kg 36,0/37,0 kg 24/34 kg 31/33 kg € 0,70 Steady
  40/+     kg 45,0/48,0 kg 34/+   kg 38/40 kg € 0,60 Steady
Thirds 15/+      kg 25,0/27,5 kg 13/+   kg 24/26 kg € 0.25 Steady
Thirds bulls 30/+      kg 38,0/40,0 kg 24/+   kg 33/36 kg € 0.35 Steady

We are increasingly realizing and have also been notified, that the content of our market report in full or in part is frequently copied and distributed or published without our permission. Apart from the fact, that we are honored by the interest our report consequently receives we would like to draw our readers attention to the fact, that the market report is covered by copyright law. We think, that it is not only bad manners to copy and use it without permission, but one should bear in mind, that copying and distributing without permission is a violation of international law. Please contact us for any questions in this regard to avoid misuse or misinterpretation of the content of the market report.

E-Mail: sturm@frsturm.com © Friedrich Sturm GmbH & Co. KG Web design: SKS online