Animal Fats – International

Fat prices in the Australian and New Zealand markets are lower this week despite tight production. Slaughter in Australia was up 3 percent compared to the week prior, but down 13 percent compared to year ago levels. Wide spreads to palm oil and quiet demand from the renewables sector have pushed prices lower. The prior three year average premium of palm stearin to 4% ffa tallow export FOB from Australia is $66, at present that market is a $20 discount to BFT.

Figure 1.

North American exports have been quiet this week. There are a number of beef, pork and poultry plants that have been idled or slowed in an effort…