Market report 22.07.2022

pronounced than one is used to in normal years. Business in the current week was actually exactly as expected. There was little movement in Europe, apart from the routine business that still had to be discussed here and there before the summer vacations and, if necessary, concluded. However, in terms of volume, this was certainly not a large amount. There was more activity from Asia at the beginning of the week than we had actually expected. The problem, however, was the prices, because the bids received were up to 15% below the current asking and market prices. There was almost no room for negotiation, and therefore, at least for us, no major deals were concluded. The interest among the low grades was understandable, as obviously low-priced salted hides were wanted either just to fill the production or considered for the market of collagen. The inquiries for bull hides were then rather surprising despite the low prices and at the end of the week one wonders whether it might have been better to have been team of pessimists after all and accept the bids that were too low from today’s point of view. Time will tell and at the moment you can actually justify your decision only with the very low kill. So at the end of the week, the bottom line was not a particularly remarkable amount of sales, knowing that it could well have been much more. It remains with it also everyone free to make itself an opinion over the genuine price level. If we stick to the asking prices, then the level has not changed much, the same applies to the prices in Europe, but if we take the performance in Asia as a basis, then lower prices would be in the lists and reports.

What do we expect

Also this week, we actually do not have much more to add to the assessment of the past week. The Europeans have now said goodbye to the market and there are no signs from Asia that they are willing to bow to and accept the wishes and demands from Europe. We are quite sure that customers from Asia will continue to use the absence of their European counterparts to look for attractive offers in the coming weeks. Thus, with regard to the prices, something will only change if someone should actually agree to accept the markdowns, especially for male goods, and thus accept a further price drop. However, this would require a significant adjustment of prices at the slaughterhouses, and there is currently still too much influence of the optimists, who may also try to protect their stocks from valuation adjustments.