Market Report 31.10.2025

What happened this week

The week in northern Germany was shorter than usual, with a public holiday on Friday in the Protestant regions. For many, this provided a pleasant long weekend, while for those working outside these regions, it was a holiday combined with a few working hours. Market activity remains somewhat volatile. This observation, however, primarily applies to overseas markets. In China, uncertainty persists regarding the political situation and ongoing trade tensions with the United States. Even minor signals can trigger notable reactions in our markets. While domestic consumption in China continues to show a certain degree of stability, many exports of consumer goods remain heavily dependent on political decisions at the highest level. The recent meeting in South Korea appeared to signal calm and stability in trade relations. However, experience has shown that such agreements often have limited durability — sometimes lasting a day, sometimes a month. This time, it is said to be for a year. The impression arises that the main intention was to prevent the suspension of tariffs from expiring on 8 November and to avoid further escalation for now. Nevertheless, there was noticeably more market activity from China this week compared with the previous one. Buyer sentiment, however, remains divided. One group continues to seek bargains well below current price levels — typically 2–3 dollars under the minimum — making business with them almost impossible. The other group takes a more pragmatic approach, recognising that significant price reductions are unrealistic at present. While price increases or satisfactory levels are equally out of reach, this more realistic stance at least allows for the shipment of goods before the Chinese New Year with manageable losses. A modest strengthening of the US dollar toward the end of the week provided some relief — even small positives are appreciated in the current climate. In Europe, the situation remains challenging. The mood continues to be weighed down by negative developments in both industry (notably the automotive sector) and politics (EUDR). The lack of orders and its resulting effects continue to strain the entire supply chain from the slaughterhouse onward. Heavier, male, and consequently more expensive animals, in particular, require price adjustments to reduce market risk. Price negotiations are scheduled for next week. It remains to be seen whether the politically and strategically driven focus of recent months will give way to a more realistic assessment of market conditions. Sales this week were limited to Asia, primarily involving cows, at the stable price range seen for months — roughly within a one-dollar margin per hide.