What happened this week:. Well, the market really fall into the total holiday mood we expected for the week. Activity – in particular from Asia – kept one more busy than actually expected. Unfortunately was the USD  strength only shortlived and the gains did not exceed the 1,36 mark and there was again only a very small time window for getting the currency position favourable for the week. Consequently was there little chance to convert the market activity already into better revenues. Anyway, better not complaining when the product still moves and sales can be considered as sufficient for the time of the year. To be exact one has also to consider, that the market activity was not spread across the board, but mainly focussed on cows and low grades. Bids for bulls were plenty, but prices form the Orient did not meet expectations and the price levels in the USA are for many still more attractive not to speak about the volumes of consistent material they are able to buy out there. So was the huge export sales number reported from the USA not really a surprise as tanner got from there what they wanted and took the chance to put under their belt what they were able to get from their preferred origin. The gap

What people were willing to bid for European males in relation to their US counterparts was about USD 2-3,00 per pcs. depending on the weight range what is anyway confirming our view about the need of adjustment for bulls at the abattoir doors. There are still too many out there who believe, that the ‘market superstars’ of the last cycle would not need any major correction. While selling prices have already eroded and see little chance for a rebound in the short term need abattoir prices still  the final correction to bring them back in line with the global market realities. However, one should also see the positive signs and this is, that the confirmation of good demand reflected by the larges sales from the USA over the past weeks prevents also the European market form a freefall in prices and has built a temporary security floor in the market slightly below the present levels. Also not too bad at this time of the year and if things are developing orderly the necessary correction can be negotiated with the butchers for August and then we could start the new season from reasonable levels, far reduced market risk and at the end also little damage after the pretty bumpy roads the market took over

the last quarter. Almost too good to be true. Anyway, there is a fair chance to roll this market out without too  much turmoil and settle it on fair levels to take a rest and to analyse the rest of the year carefully when the picture is getting a bit clearer with the return of the industry after the holidays. There is a good chance for a solid base into the last quarter, but certainly not a 100 % guarantee, because there could still be a few traps on the way. Prices were incrementally lower for the sales during the week when the right timing for the currency market was applied.   The kill: With the abattoirs being now also in the peak holiday season and the beef business difficult remains the kill on low levels what is protecting the market also from further difficulties. For the next two weeks there should be little change and after that we should gradual increases again. What do we expect: We would say, that the cow market has grounded. Demand is steady and no excess of supply presses on the market. The market for males seems still to have some further space until it is hitting the floor. May be not too much, but definitely it is not yet fully sorted out. However, we are still in the holiday period. A progress of the US market could offer also support for the male market over here.