Friday, 18.09.2020
Market Report

The US $ in EURO

What happened this week?:The week was actually a bit twofold. The abattoir buying in our region lost quite a bit of contact to the market. Prices paid to the abattoirs advanced above the real market levels. All had been already triggered the couple of weeks ago in the South of the country and as usual when a certain excitement has been triggered it is almost impossible to get it back under control. Butchers actually appreciated the typical high processor reflex and squeezed more from them as it could be justified according to the market conditions. It could have been relatively easy and healthy for everyone. The tanning industry and also the suppliers were and in a general mutual agreement that a general and moderate rise of prices in steps and from month to month could be justified if the demand, the leather business and last but not least also leather prices continue to experience the recovery which has started with the end of the holiday season. However, there is always the one who thinks he is smarter than everybody else and trying to run ahead of the realities. At the end all the simple calculations and the prices paid were allowing a moderate move for the current month, but not a jump. Everybody is happy about a recovery of business and the major aim has to be to protect sales and shipment by as much as possible. Except the season nothing fundamental has changed. It is obvious, that the furniture industry was willing to take the chance of cheap leather prices to display more of the material. The vehicle manufacturing is going through a period of normalisation and this is solid not only in Asia, but also in Europe. However, a profound improvement for side leathers cannot be seen except the seasonal restart of production. Some people play the supply card pointing towards lower kills in some countries others play the demand card by honestly believing that the leather demand has fundamentally gone up and it is not just a correction of the excessive caution the leather industry took in the second quarter and the summer. Don't kill the cow if you look for milk. The rising concerns about the pandemic could quickly hit back into all our businesses. If all our hopes materialise and consumer demand continues to grow a patient and steady rise would be healthy and beneficial. If it would be only for the reason of save business for everyone. However, it is the usual greed and hectic what makes it difficult again. To cut a long story short: The sharply increased abattoir prices could not be converted right away into the equivalent selling prices. Tanners all over the world were willing and granting possibly half of what the prices have been increased at the abattoir door. Business during the week was just depending on the prices one was willing to accept. Interest from upholstery and automotive tanners was stable, but strictly limited at certain price levels. Buyers were missed the market in the past six weeks needed to be a little bit more flexible while the others had been very rigid in their price ideas. Sales numbers were in our case acceptable for the week, but not evenly distributed across the hide types. Females, upholstery hides and heavy males for the automotive industry continue to be in the focus while standard side leather hides remain on the sidelines. Prices paid were about 5 to 8% higher versus a months ago.. The Kill: Pretty warm temperatures I keeping farmers busy with everything else except selling cattle. Consequently were slaughter numbers moderately down and until the nights are getting seriously colder we will have to wait for the next step in the seasonal rise.  What do we expect: Presently we have entered a certain type of stalemate with sellers neither willing nor in the position to readjust their asking prices and buyers not willing to follow the road to the full extent. We assume that the next week will become a bit of the testing who is going to be the first to move. Not easy for a quick one now

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 € 0,70 Steady

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 0.65


25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 0.55


30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 0.50

Bulls 25/29,5 kg 27,5/28,5 kg 22/ 27 kg 25/26 kg € 0,65 Difficult
  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 € 0,70 Steady
Thirds 15/+      kg 25,0/27,5 kg 13/+   kg 24/26 kg € 0.30 Steady
Thirds bulls 30/+      kg 38,0/40,0 kg 24/+   kg 33/36 kg € 0.35 Steady

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