Market report | 18.02.2022
Osterhorn, Friday, 18.02.2022
The US $ in EURO 1,1350
What happened this week
As was to be expected last week, the standstill continued this week. Of course, as always, there are several reasons for this. First of all, business in Asia has not really started up again after the New Year holidays, which may also be due to the Olympic Games. But the significant price difference between American and European hides certainly plays an important role. It is also quite certain that the future of leather demand for the next seasons is still very unclear and the friendly picture that is often painted is simply not yet sufficiently confirmed. The danger of war in Eastern Europe will certainly not be neglected either, because no one can foresee today how the problem will be solved and what consequences one decision or another could have for many areas of life and the economy. Last but not least, of course, many are waiting for the trade fair in Milan next week. The leather industry would certainly like to get an impression of the mood among its customers before making any further major decisions regarding the supply of raw materials. Of course, this also applies to the raw material suppliers who, for their part, are almost universally on a wait-and-see attitude at the moment. Actually, most of the market is in equilibrium and one could shape the next few weeks relatively stress-free on this basis. Only the sector of hides for the automotive industry is again out of balance. Smaller kill numbers and the eternal rumours that keep being spread in the market are causing great unrest and the slaughter industry is trying to convert this into significantly higher prices. However, it is not that easy and the resistance for the large volumes from the leather industry
remains relatively high. Similarly, although the financial results of the car manufacturers are very impressive, the news of the last few weeks about production in the near future is by no means so impressive that one could speak of a great compulsion to buy raw material. So this sector is also relatively stuck in negotiations at the moment, as the ideas just continue to diverge far too much. Presumably, the meetings in Milan next week will bring about the final decisions on how prices will really develop in the coming weeks and how demand and need in this sector will really look. Sales this week were once again very, very quiet. Those colleagues who can be believed report the same situation in unison. In the end, there were no major deals to be made, and that of course has to do with the trade fair in Milan, which is usually arranged for the conclusion of new contracts for the coming month. This left only business in the specialities and further on for the low aelections as well. Today, when something is sought and demanded from overseas, it is usually only low-priced goods and this goes as low as the split.
The expression ‘it’s rippling along’ probably best describes the situation for slaughtering. Very high prices for live cattle and at the same time a relatively tough business for the prime cuts do not make it particularly easy for the butchers at the moment. Nobody in our region can expect anything to really change in the foreseeable future. The supply of slaughter cattle will not increase significantly and prices will not fall significantly at all.
What do we expect
There is little point in making market predictions now for the coming week. Much, if not all, will depend on the impression the fair in Milan will make. Which leather articles will come and go, how bold are the leather buyers in their forecasts, how well is the pipeline filled up to the retail level and what influence does the geopolitical situation have on the mood and on the decisions of all those involved? Next Friday we will know more.
|Type||Weight range||Avg. green weight||Salted weight||Avg. weight salted||Price per kg
|Ox | Heifers||15/24,5 kg||22,0/23,5 kg||13/22 kg||20/21 kg||€ 1,25||Stable|
|25/29,5 kg||27,5/28,5 kg||22/27 kg||25/26 kg||€ 1,00||Stable|
|Dairy cows||15/24,5 kg||22,5/23,5 kg||13/22 kg||20/21 kg||€ 0,90||Stable|
|25/29,5 kg||27,5/28,5 kg||22/27 kg||25/26 kg||€ 0,88||Stable|
|30/+ kg||33,5/35,5 kg||27/+ kg||29/31 kg||€ 0,78||Stable|
|Bulls||25/29,5 kg||27,5/28,5 kg||22/27 kg||25/26 kg||€ 1,20||Stable|
|30/39,5 kg||36,0/37,0 kg||24/34 kg||31/33 kg||€ 1,50||Stable|
|40/+ kg||45,0/48,0 kg||34/+ kg||38/40 kg||€ 1,45||Stable|
|Thirds||15/+ kg||25,0/27,5 kg||13/+ kg||24/26 kg||€ 0,50||Stable|
|Thirds bulls||30/+ kg||38,0/40,0 kg||24/+ kg||33/36 kg||€ 0,55||Stable|