What happened this week: Another reasonably quiet week. Holidays in Europe on Monday and Wednesday, plus the ongoing abattoir buying depressed activity by quite a bit and also interest from Asia was fairly behind the average activity seen in the first months of this year. The constantly falling value of the USD is also weighing on calculations, so that we are not particularly satisfied with the week. Selling hides was again a subject of active sales activities and not just a collection and decision on interest or bids. So most of the sales were bits and pieces on cowhides and low grades. So, most of the interest and work this week was again concentrated on sidelines, such as sheep, lambskins, but also low grades of calf and kips. Fortunately as these types found so little or no interest for such a long time. Most of the market opinions guided are either supply or demand. Many are focussed on the supply side and arguing with the low kill and available numbers. Others are concentrating on the demand side

and pointing on the low production season and the fading demand towards the summer in particular from Asia and also from Italy. At the end we feel, that at present supply plays a more important role, but can not be generalized for all hide types. Regular productions of leather from bullhides are strong enough to absorb the production and any extra will continue to support prices. In cows we feel a bit the opposite, because here supply is adequate and any interruption in sales and/or shipments will have negative impacts on the market levels, not to speak about the potential influence of the USD exchange rate.  Consequently we feel, that the markets are increasingly volatile again. Global demand and outlook for leather business continues to be intact, but a positive base is not anymore enough to justify a bullish sentiment for raw material prices. The market was a bit nervous by mid week when the news about the import stop for 11 EU countries into Russia for EU beef, pork and poultry reached the public. This

could have had a negative effect on slaughter. By this afternoon we hear, that the problems are solved on the political level and imports are going to resume with immediate effect.  The kill: After last weeks positive surprise numbers eased again this week – in particular on bulls. We are now for the next 8-12 weeks in the low season and so levels will remain low and changes will be more coincidental. What do we expect? We are a bit confused as the one can easily understand, that the market players don’t see it all the same way. The low kill and isolated demand is creating a more positive sentiment, than we feel is justified. We said already a while ago, that the market should have stayed until the end of the summer on the price levels of March. This was a price level basically adequate for every one and with little risk involved. The movement of abattoir  prices in April and the short term optimism in Bologna destroyed the equilibrium and this has not been restored yet. Short term we believe, that cow prices will face pressure, while males are well supported