Market remains tough in Australia
Published: 05 Dec, 2018
A local trader confirms that the market remains difficult, although it has steadied in recent weeks, with prices having reached a level accepted from buyers. Activity seems to have reduced compared to a couple of weeks ago, when a good round of business (relative to the current market circumstances), allowed some to fractionally lift prices on the most popular ox/heifer hides. Also, cases of quality claims from some tanners were recorded, which is often used as a pressure tool to renegotiate the original price when the market is weak.
The same trader foresees some pressure at the abattoir gate which will prevent prices at the origin to adjust downward. This would be due to an undertone (local) summer throughput, as a consequence of the higher kills recorded in winter propelled by the drought conditions. For more information click here.