Animal Fats – International

Palm stearin prices moved lower overnight, down $25/MT out of the Malaysian market relative to a week ago and $100 MT lower than four weeks ago. Continued production and big inventories are pressuring that market lower. June soybean oil futures are off 5 percent over the last three weeks. With vegetable oil prices moving lower there is pressure in the Australian and New Zealand tallow markets for prices to move lower as well. Prices out of New Zealand did fall NZ$20 compared to last week as buyers in China have been resistant to the wide spread to palm. Australian prices were steady, but again, there is risk for lower prices basis the cheaper veg oil markets.

Trading in the EU market was steady for the lower grades and down on edible beef tallow and lard. Slower production is limiting price movements, but there are reports of shorts in the market and second quarter contracts needing coverage.

The local US market has been fairly…