Friday, 22.10.2021
Market Report

The US $ in EURO

What happened this week: We have been in a phase for some time now in which it is extremely difficult to provide a truly reliable and accurate reflection of the market and prices. From a purely theoretical and analytical point of view, the situation is relatively clear. The only problem is that this is not reflected in regular price reports. In the absence of sufficiently reliable transactions and, above all, sufficient volume, the reports and the price reports have not been a marital reflection of the respective current market for some time. Since mid-September at the latest, at least in Europe, there are almost only deals based on the regular delivery programmes for fresh produce. Since these usually run for at least four weeks, there is no real new price development for a long time and the price of the past keeps its current value until there is a new one. Of course, this distorts the real situation not insignificantly. This is also due to the lack of active exports to Asia. When there are enough goods on the market, the export business is active, then there are indeed new prices several times a week and a dynamic market with correspondingdevelopment Consequently, this means for the current situation that both the reports - and this also applies to ours - as well as the price quotations have no real relation to the current market situation. This is regretted, but there are no great alternatives. No trade, no price and individual random sales  can not be used as a reference for the general market situation. So  in these times everyone paints his own picture as he needs to, or as he likes to. Regrettably, from a sober point of view, we currently have more of a demand problem than a real price problem. In particular, the considerably reduced purchases by the automotive industry are putting a strain on production in the supply chain. Too little leather is being called off, and presently that has nothing to do with the amount of demand or the prices. While the mood in the other sectors was still very positive until mid-September, there is now a lack of orders to confirm this. The reasons are many, but the leather industry is disappointed. This is all the worse because we are now in the period in which the greatest production activity is normally started. Consequently, this means that the material flow in the supply chain has slowed down considerably since a few weeks. In addition, prices in other regions have already fallen significantly, which does not exactly support the competitiveness of the European hides. Business this week has been correspondingly slow. There are no new prices yet, individual sales in Asia cannot be consideredrepresentative and everyone is now waiting with bated breath for the next abattoir negotiations at the
beginning of November. Effective business this week was again concentrated either on coincidences or on a wide variety of niche items that do not represent a market reference.
The Kill:  The kill fell back a little this week. The extremely high purchase prices for livestock, production problems in the slaughterhouses and sluggish business in the food retail sector weighed on the situation. There is hardly any way out of this vicious circle for the time being and so perhaps only the change in the weather in the last few days can bring a little more dynamism.
What do we expect
For the moment, we do not know what could stop the price pressure in the coming weeks. In our view, the main problem is that many European hides are currently not competitive in terms of price, and this at a time when production in China is already burdened by energy shortages and logistical problems. Once again, we have failed to adapt to the market realities in time and this must then always be made up for with the corresponding delay. We still enjoy the privilege of quality in Europe, so if we are realistic in our pricing, then there will be considerably fewer problems.

Type Weight range Avg. green weight Salted weight Avg. weight salted Price per kg green weight
Ox/heifers 15/24,5 kg 22,0/23,5 kg 13/22 kg 20/21 kg € 1,15

  25/29,5 kg 27,5/28,5 kg 22/27 kg 25/26 kg € 1,00

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 0,90


25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 0.85


30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 0.80

Bulls 25/29,5 kg 27,5/28,5 kg 22/ 27 kg 25/26 kg € 1,20
  30/39,5 kg 36,0/37,0 kg 24/34 kg 31/33 kg € 1,45
  40/+     kg 45,0/48,0 kg 34/+   kg 38/40 kg € 1,40
Thirds 15/+      kg 25,0/27,5 kg 13/+   kg 24/26 kg € 0.50
Thirds bulls 30/+      kg 38,0/40,0 kg 24/+   kg 33/36 kg € 0.55

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