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Osterhorn,
Friday, 10.05.2019
Market Report

The US $ in EURO
1,1250


What happened this week?: For a long time politics did not influence the markets and the economy much. Negative news, conflicts and matter of great influence were just ignored and wiped off the table.  Plenty of talks, headlines in printed press, internet (fake) news or the evening news show - the news could not be as negative as they were able to stop the general growth of global economy and consumer spirit to shop and business owner to invest. Things have changed and we could not answer the question when exactly. For various reasons suddenly the wind has changed. In Europe it is mainly the discussion about clima changes and the environment. Young protestors and the media have been successfully changed the media and a great part of public opinion to CO2 emissions. Nobody has a clear idea how and what this would mean as the major change of life of everyone and so they just follow the daily public mainstream in verbal statements. In the meantime they continue to use their SUVs, are planning the next holidays by plane, organizing a campaign against a railway track or electricity cable to bring renewable energy from the production to consumption - of course for environmental reasons.   Weekend trips, carrying the plastic bottles with shampoo, conditioner, hair or skin care or whatever else out of the stores to generally condemn the moment all meat consumption as such. In the rest of the world such trends exist too, but there the people are the general mood is more impressed by the trade ware between China and the USA or the swelling conflict between Iran and the USA and may be too by the new missile tests by North Korea. A real shot in the arm on the other side of the globus was Mr. Trumps tweet in regard to the trade conflict with China. That had sent real shockwaves around and paralyzed - as usual -  business activity in a second in China. The last remaining activity which had been preserved and and taken care of was cut the moment the tweet was sent. Everyone and everything was put on hold until the final results from the negotiations in Washington are finished and so swing the markets with the rumors. Since the negotiations started only on Thursday late our time the hide sales week was basically over and lost once again. From China we saw just bottom fishing this week. The isolated bids were so low that even in the present market environment one could expect that they would not be considered. At the end it is clear that several people just wanted to check how weak and desperate a seller is and have a bit of fun instead of being in  need to buy or having a serious interest for hides. Actually the normal procedure from China under such conditions. More worries one has to have regarding the few pending sales, payments and shipments. The extend of the weird attitudes in market rises and the big risk today is that several players have already decided that they will not need suppliers in the future anymore what makes their behaviors even more dangerous and unpredictable. If Chinese tanners want to be respected partners in the global community and not just a unpredictable one they will have to decide if common rules apply or not. In Europe business was more regular. The successful tanneries - and we still have many - need to cover production and need lower prices to stay competitive and keep leather in the play. With the lower prices it is getting easier for them and this is reflected in the far more professional discussions and better sales potentials here. Several have been renewed at lower prices - it i not enough, but better than nothing these days. The good news is that nobody surrenders and with lower raw material prices more options are opening up again for creative minds. The kill: The kill is reasonable and normal for the season. Weights are still better than expected and decline only slowly. However, the further spring progresses the more numbers and weights will fall.  What do we expect: It continues not to look too good. The problem is actually China. The biggest user of hides struggles and the leather sector is process of restructuring and shrinks dramatically. So, there is still no home for all the hides produced. Quality hides still sell and so remains the still problem with the surplus of commodity hides.


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 € 1,60
Stable
  25/29,5 kg 27,5/28,5 kg 22/27 kg 25/26 kg € 0,80 Weakish

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 0,70

Weaker
 

25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 0,55

Weaker

30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 0,50

Weaker
Bulls 25/29,5 kg 27,5/28,5 kg 22/ 27 kg 25/26 kg € 1,25
Pressure
  30/39,5 kg 36,0/37,0 kg 24/34 kg 31/33 kg € 1.30
Pressure
  40/+     kg 45,0/48,0 kg 34/+   kg 38/40 kg € 1.20
Pressure
Thirds 15/+      kg 25,0/27,5 kg 13/+   kg 24/26 kg € 0,35
Weakish
Thirds bulls 30/+      kg 38,0/40,0 kg 24/+   kg 33/36 kg € 0,50
Weak





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