Vera Dordick reports that the bear market in hide prices continues in the US. All selections were lower or weakly lower even though Texas steers managed to hold on to the US$26 level (FOB) reached last week. Cows were particularly hard hit with little interest. Slaughter outstripped both sales and shipments in what was a miserable week for the sector.
In Europe bulls continue to decline and lost another 5 US cents. Cows were generally steady but discounts had to be made in order to secure business. With low demand and prices the risk factor has once again emerged and there are reports of some defaults on contracts in Europe.
In Latin America benchmark Brazilian TR1 wet blue (full substance, 23 kg) held on to the US cents 60 level but there is pressure building due to price declines in the US.
In Q1, Brazilian leather exports were slightly higher in volume but 22% lower in value. March exports were up on February but down when compared to the same month in 2018.
In other news from Latin America Vera highlights Uruguay’s plummeting leather exports, 9,000 job losses over four years in the Argentine footwear industry and Mexico implementing some tariffs on selected imports.
Here is this week’s complete report: