Ruminant MBM prices were unchanged into China and lower into Indonesia this week. There is continued risk for lower prices into Southeast Asia in the near term basis cheaper, US material. Pure beef packer material is trading as low as $165/MT FOB plant this week. Both porcine and ruminant production in the US continue to be very strong with slaughter levels projected to move above 2019 levels over the next few weeks.

Australian prices moved lower this week for MBM and feathermeal. Sellers are facing stiff competition into the export market from the cheaper US material have had to lower prices to remain competitive. Slaughter was up 4 percent last week relative to the week prior, but remains well under 2019 levels. There is concern about the spread of COVID-19 in Australia and potential disruptions to the supply chain, but thus far cases have been isolated.

As stated, strong beef and pork production continue to push…