Hide prices are slowly recovering from the historically low levels witnessed at the beginning of this year following the dramatic price drop which occurred during October 2008.
Meat and Livestock Australia reports that as with recoveries for most commodities, any rise in price is typically slower than the fall, as the backlog in product takes some time to move through the supply chain.
Lower cattle slaughter levels in all states, particularly in the south, have strengthened competition on the supply front.
There has also been a shortage of supplies in Europe; however, larger numbers are emulating from the US at present.
July and August is usually a lower production period due to the northern summer, with stronger demand typically picking up in September.
Many traders are looking to purchase hides to put way in storage due to the low prices currently available.
Prices have been erratic, but are currently steady to 15 per cent higher for processed hides and 40-50pc dearer for green hides compared to the low point of late February.
In comparison to the same time last year, prices remain well down, with brine cured hides worth around a quarter of last year’s value and wet blue hides 40pc cheaper.
Green hides are currently 60-70pc cheaper and even less on secondary lines.
Domestic prices for green hides in Victoria currently average $12.50 for medium weights and in NSW the same category is averaging $7.70/hide.
Processed hides average $11.50/hide for brine cured tick free lines out of Queensland and wet blue medium weight hides are currently making $40.70/hide.
These prices are still very low compared to historic levels, with demand for upholstery leather and to a lesser extent, shoe leather, needing to pick up before any substantial move will be seen in hide prices over the coming months.
