Hidenet’s CEO and Editor-in-Chief, Vera Dodick, reports that it was generally a quiet week in the international hide market. Although Italian tannery activity has now restarted, most plants are only operating at 50% capacity so far. With retail due to reopen and the 3 main US automakers also due to restart production, this may have an impact on demand in the leather sector.
UK ox was at 65 pence per kilo, North German bulls fell by about 10 euro cents to 65 – 70.
In the US Heavy Texas remained around US$ 15 – US$16. Slaughter was up by 10% compared to last week but still on the low side seasonally speaking at 499,000 head; sales were still low at 317,700 nd combined shipments crept higher to 470,700 but still on the low side as barbecue season approaches.
Lower slaughter combined with retail being closed means that there will not be millions of hides to deal with and this could support prices as packer activity is also slowed due to the COVID-19 safety measures.
In South America, raw hides in Brazil were at US cents 9 per kilo and TR1 was ar US cents 53. Brazil leather exports fell 34% year-om-year and footwear exports fell by 40% in volume and 68% in value compared to the same month last year.
Here is this week’s complete report: