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Osterhorn,
Friday, 14.02.2020
Market Report

The US $ in EURO
1,0860


What happened this week?: What can actually be written under the circumstances we are facing at the moment. One may or may not be concerned about the personal risk from the Corvid-19 virus, but the side effects hitting every business sooner or later which is related directly or indirectly to China. Everybody can read the daily reports, the questionable count of infections and casualties, but this is really only the tip of the iceberg and the whole story. The main problem remains all the media news which are difficult to be considered as a reliable source of information these days. As far as business is concerned activity in China is only very slowly beginning to recover. Companies may reopen, but how much they are really capable and willing to produce remains completely unclear. The biggest challenge remains transport and travel. Workers cannot return to their factories and goods cannot be timely transported to their destinations. The ports are congested and if this is not quickly resolved the real problem is still going to come within the next weeks. At the end the Chinese government is in a crucial situation by having to decide fundamentally for health or for business. The world can definitely continue for a while, but in some cases the dominance and dependency on China within the global supply chain can become quickly critical. In the leather business the world has become pretty much two-fold. While everything related to China has become pretty sluggish or even put on hold the rest of the world continues quite undisturbed.At the same time we have at least in our case to report that Chinese clients are behaving extremely correct until today. Deposits are paid and even balances too despite the fact that many arrived containers are still stuck in the ports and what is happening to the ones which are reaching destination soon being absolutely unclear. So, thanks to those were not using the circumstances to their particular benefit - but fair enough quite a number of people where afraid of. We can only hope that this situation is going to last and container terminals and domestic transport in China is going to return to normal very soon. Otherwise the capacity of the ports will be quickly exhausted and if international shipping lines are then still willing to call the schedule ports is pretty unlikely. Business under these circumstances is certainly very difficult. Nobody can really expect Chinese buyers to be active players in the market not knowing what their future in production is going to be. Difficult, because waiting too long would also mean that by the end of the present problem one would and could be without adequate raw material in supply. The next unknown is also the shipping question. The balance of available empty equipment is going to be seriously disturbed and if the shipping lines are willing to take hides and skins as a priority product is pretty unlikely. Business outside China continued on a reasonably steady level. The enthusiasm about a firmer market definitely faded. Tanners seeing offers with higher prices were actually quite a bit upset. For hides and skins which are mainly finding their homes in China prices anyway not a factor today. Lower prices could possibly find more speculative interest, but if the hides are at the end going to be taken and can be shipped remains still totally in the air. As a result sales were limited and in most cases on just stable and steady levels..The Kill: The slaughter numbers remain relatively low with also quite a bit of trouble with the beef sales and the prime cuts. Weights continue to remain high and so we live from week to week with not much of a change.  What do we expect: We have little indication the next week all will return to normal again. We expect prices to remain pretty steady but is actually under the present circumstances the best for everyone. The number of unknowns remains still too high to make a fair judgement about the next step in trend in the market.


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 € 1,20
Stable
  25/29,5 kg 27,5/28,5 kg 22/27 kg 25/26 kg € 0,70 Stable

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 0,70

Stable
 

25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 0,60

Stable

30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 0,55

Stable
Bulls 25/29,5 kg 27,5/28,5 kg 22/ 27 kg 25/26 kg € 1,15
Pressure
  30/39,5 kg 36,0/37,0 kg 24/34 kg 31/33 kg € 1.15
Stable
  40/+     kg 45,0/48,0 kg 34/+   kg 38/40 kg € 1.05
Stable
Thirds 15/+      kg 25,0/27,5 kg 13/+   kg 24/26 kg € 0,30
Stable
Thirds bulls 30/+      kg 38,0/40,0 kg 24/+   kg 33/36 kg € 0,40
Stable





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