Trading into the China and Indonesia markets was steady this week, but buyers in both markets are pushing back on prices due to the availability of cheaper soybean meal. Protein prices in Australia and New Zealand were unchanged this week. Supplies are at risk for tightening on bovine products due to slaughter reductions. Cattle slaughter in Australia was estimated by the MLA at 123,346 head last week, down 2 percent from the week prior and 19 percent relative to last year. The Chinese government has banned beef imports from the four largest Australian abattoirs in response to the Australian government pressing for an independent investigation into the origins of the SARS-CoV-2 outbreak.

Prices in the US market for meat and bone meal have fallen due to the increase in slaughter. Porcine material in particular has seen the biggest impact of the surging supply. Prices are off as much as $200/MT FOB plant for material this week relative to two weeks ago. Mixed species MBM…