Tallow prices have benefited from a recent surge in commodity prices, moving up to resistance levels. Tuesday trade data from China could throw cold water on the fats complex, as commodities move lower in the face of weaker than expected data.

According to the Chinese Government, Chinese exports plummeted by a near-record 25.4% year-over-year in dollar terms in February, and by a record 20.6% year-over-year in yuan terms. This is well off the median forecast for a 14.5% year over-year-drop and follows a 11.2% year-over year-decline in January data. Imports fell by 13.8% year-over-year, better than the 18.8% drop seen in the previous month.

The technicals on tallow prices are robust, showing that prices have surged toward resistance near the Bollinger-band high (2-standard deviations above the 20-week moving average) and are poised to test the 30 level. Support is seen near the 20-week moving average at 23. Volatility has increased with price action which is reflected by the divergence of the Bollinger bands which signals future increases in volatility.