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Osterhorn,
Friday,
26.06.09 |
Market Report |
The
US $ in EURO
1,4060
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What happened this week: It is not so easy to draw a bottom line under this weeks market.
Certainly one can say, that there is still a too fold market.
Premium male hides and the rest of the pack. Despite a
general less excited market situation against the peak weeks
in May and beginning June there was at the end still much
more interest and business than at least we expected.
Most of the interest was again focussed on males or heifers.
From the auto industry one get mixed impressions while
some brands seem to budget their future with some more
optimism are others still pretty depressed and this is also
reflected n their sub-suppliers in the supply chain. As far
as the hides which are used in this sector the mood has
changed at least from totally depressed to moderately
depressed and some of the replenishment programs continue.
With the seasonally declining kill and some interest from
shoe tanners in
Asia
price for males were lifted a fraction, but still not
compensating for the jump seen already at the abattoir doors
before. While the male market has certainly found a balance
for the moment and sees good support from the lower summer kill at least until
most productions are going to
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shut down in late July/August
for their summer vacations. The holidays are playing also a
certain role in
the market assessment, because one has the impression, that
in a number of productions inventory replenishment is the
real motivation for the increased demand. Different was the
situation in the female market. We see the buying frenzy
from
China
already slowing down for weeks. Slowly, but surely is demand
falling with the increasing asking prices and this weeks
bids were well below asking levels and the range trading of
the USD doesnt help much either. Asian tanners are hardly
willing to pay May levels and claim, that they have already
cheaper and more attractive offers from the
US
. One can believe that or not, but there is no question,
that buyers are not desperate anymore for hides at the
moment and only willing to buy if prices are attractive.
With all the concerns about consumer demand in the
upholstery and garment sector for the rest of the year one
can understand that buyers take a break, digest first all
the hides they got or are on the boats already and wait
first to see how leather orders are going to come in. One
can also hear frequently from
China
, that they expect now prices to ease into the summer and that they can easily wait
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for some weeks or months
for more attractive levels to buy if they need to. So
far most are still comfortable sellers have moved their
stocks and feel easy and buyers got the stocks and feel easy
as well. Without equivalent finished leather orders arriving
soon the situation could become interesting over the summer.
As far as prices were concerned they were pretty much
reflecting the market. Males were able to gain a few cents,
while the prices for the limited trade in cows can hardly be
called stable. Looking at volumes and bids a bit weaker
might describe the situation probably a bit more accurate. The
kill: The
continues to decline and the forecast of butchers for the
coming weeks is a more pronounced decline in the kill.
Weights remain low and should now shortly reach their lowest
level of the season. What
do we expect: There are still about 3-4 weeks to go
until most of the industry shuts down. It seems, that males
remain well supported and any extra quantities will be
snapped up by interested buyers. If the interest is strong
enough to justify any further price rises well we think
this would be too much. The situation for cows is different
and we would not be surprises to see pressure mounting
linked also to the USD variation
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| 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 |
1,30 |
Steady |
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25/29,5
kg |
27,5/28,5
kg |
22/27
kg |
25/26
kg |
1,00 |
Steady |
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Dairy
cows
|
15/24,5
kg
|
22,5/23,5
kg
|
13/22
kg
|
20/21
kg
|
0,80
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Pressure
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| |
25/29,5
kg
|
27,5/28,5
kg
|
22/27
kg
|
25/26
kg
|
0,75
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Pressure
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| |
30/+
kg
|
33,5/35,5
kg
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27/+
kg
|
29/31
kg
|
0,70
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Pressure
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| Bulls |
25/29,5
kg |
27,5/28,5
kg |
22/
27 kg |
25/26
kg |
1,10 |
Steady |
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30/39,5
kg |
36,0/37,0
kg |
24/34
kg |
31/33
kg |
1,00 |
Steady |
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40/+
kg |
45,0/48,0
kg |
34/+
kg |
38/40
kg |
0,90 |
Steady |
| Thirds |
15/+
kg |
25,0/27,5
kg |
13/+
kg |
24/26
kg |
0,50 |
No interest |
| Thirds
bulls |
30/+
kg |
38,0/40,0
kg |
24/+
kg |
33/36
kg |
0,50 |
Steady |
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