What happened this week: As far business is concerned trading was again almost entirely concentrated on Asian interest. Italy was also quote to fill the last small needs for July productions and those tanners who had gambled until the very last moment in the hope they could squeeze the market further down had to give in and to accept sellers levels. However, even if many talked prices down the levels of trade which ranged around the € 1,25 mark are very attractive  for this material. Interesting is the fact, that Asian tanners don’t mind August and even September shipments, while Italian tanners are not willing to even listen to offers after their holidays. This is unusual as normally at this time of the year they are starting to cover their needs for after their return. Even more the case, considering, the price levels we have reached in the meantime. However, it is clearly reflecting how different the situation and also the expectations are in Europe and in the rest of the world. While

Europe is still in the doldrums and the situation – in particular in furniture – couldn’t be worse, the prospects are lighting up in the rest of the world. A good example was given today by a spokesman of BMW who stated, that they consider further expansion of production in Asia and the USA as the outlook for Europe and the potential for car sales in the luxury end is not promising while business overseas is brisk with very positive expectations. Asian buyers remained active in cows and heifers – their specialities – and prices edged up also supported by the strengthening USD. Sales in bullhides are awaiting the abattoir negotiations and European tanners are still doing their best to depress the market and to prepare sellers for the price levels they have got in mind which are 10 % or more below the present market. Some are buying already intensively in outside markets which are not related to the rhythm in Germany to protect themselves against any kind of supply pressure when it comes to the showdown over the next weeks. So, when the

female market has certainly bottomed, has the bull market still a difficult time ahead to find a solid bottom – despite the very low kill and the already existing bottlenecks in fresh supplies. The kill: Slightly improved, but still miles away from acceptable seasonal levels. Low avg. weights are also a massive burden and so it is exactly where a processor should shut down and wait for better times – if he could. What do we expect? Pretty much the same as this week. The cow market has settled and it seems, that there is still more interest out there. We don’t expect, that higher prices are obtainable and so will the USD again command the revenues. The steers market will remain in apathy until sellers and buyers will meet for the showdown to negotiate contracts and deliveries for one to three months after the abattoir buying. Everything points into the direction, that this could take this time more than the normal week and will be harder than ever. One thing is clear. Presently Europe is not the place to have fun and success in business and in particular not in the leather field.