After rising to a three year high in mid-April, eastern state hide prices have eased by around 15 percent in the past two months.

Hides in the 141-180kg cwt category last week averaged $19.83/hide in Queensland, $19.33 in NSW and $21.67 (cow)  and $25 (ylg, ox, hfr) in Victoria and South Australia. Hides in the 221-280kg cwt category averaged $33.83 in Queensland, $32 in NSW and $35.67 (cow) and $39.67 (ylg, ox, hfr) in Victoria and South Australia.

Despite the recent softening trend, MLA’s Meat and Livestock weekly bulletin last Friday reported that domestic prices for green hides were still 8pc-29pc higher than the same period in 2010, and seven times higher than the same time in 2009 when the market slumped to record lows following the Global Financial Crisis in late 2008.

The peak levels experienced in April remain 35pc below the top prices achieved during 2006. A combination of high global consumer demand for leather products and a low Australian dollar helped the export dominated industry to reach the heights achieved in 2006.

The Australian dollar averaged US79c during the 2006-07 financial year, compared with 98US¢ so far this financial year.

MLA said wet blue hide prices tended to lag slightly behind green hide trends in recent years. This suggested further price declines may be possible for wet blue hides in the coming month as the sector enters the traditionally quieter leather demand period from the northern hemisphere due to the approaching European holidays.

“Supply is currently adequate to meet the softer demand, with the approaching long weekend and entry to winter reducing slaughter levels, however, US production has been higher moving into their summer.”