What happened this week: The volume of activity was slow during the week. Not a surprise knowing, that almost everyone is now awaiting the news and the outcome of the Bologna leather fair. As the whole leather trade has decided to be negative, it is very simple and easy: It can only be better than expected! However, also this week hides were sold and on top of the regular programs in males which needed to be extended again some bidding was seen from Asia in particular for low grades. As everybody else also they bid sharply below asking levels to fish around and so only isolated sales were concluded. In addition some scattered bids for dairy cows were seen, but also below what we think  the market level is. So, at the end a classic week of bargain hunting of those customers who have the courage to take the advantage of the relatively low price level of raw materials in Europe. With the week being over we have, however the impression that most sellers – with a lot of struggle – have managed over the past weeks to move what was needed and only ‘the impossibles’ are left. These are still the light

weight kips, but also some wetblue stocks of cows which are at present simply unattractive for the potential buyers, because of the problematic situation in the European furniture market and the stiff price competition from the Chinese suppliers. Talk of the week were also rumours about payment problems and delays in various parts of Europe.The Zurich auction this week which saw very few bids for  bovine hides and those which were obtainable have been far below the levels of the previous sales. This does not only confirm, that the premium end of the market is also facing difficulties, but also that the clients have already written the auction off, since it is anyway ceased by the end of this year. So, if you can buy the hides anyway outside the auction why bidding the prices up. Almost all of the last weeks activity has been coming out of Europe and so the big question is, when will the Asian buyers return to the market. Everything points into the direction , that they have the chance to sit the market out – at least for some more weeks. They are no player for males in Europe yet and so the question applies mainly for females and here we believe that the weeks of truth are going to be 

around mid November.Then the seasonal slaughter rolls out and the buyers are going to finish the inventories the large purchases made between July and mid September. Roughly calculated - and in case of sufficient leather orders in hand - a reasonable amount of interest should return at whatever level the market might be by then. From the timing not bad as the European market is expecting already the Xmas season and holidays by then.   The price levels will be set anyway by the US market and so we have to expect what is going to come from that part of the world.   The kill: The kill is now consolidating on the present levels. This is quite convenient as it is not too much and not too little and so the regular demand can be satisfied without too many problems nor overhanging availabilities. With the weather getting colder and wetter there is little reason to expect any major change in the weeks to come. What do we expect?: We don’t expect much. In our view the market is now consolidating and prices are cheap enough now. Further reductions would not stimulate demand anyway. So price variations will now depend on the individual positions rather then a new trend and also by the feel and result of the Lineapelle.