Animal Fats – International

Animal Fats – International

Tallow trading out of the Australian market was higher this week on strong export demand from the renewables sector. Production remains tight with slaughter falling to an estimated 111,521 head last week. COVID interruptions have contributed to the lower numbers, but herd rebuilding is also contributing to the slowdown in production. Cattle slaughter had been at a dead sprint over the last year and big drops in female slaughter and high young cattle prices are all indications of a period of rebuild.  Trading out of the New Zealand market was higher as well with strong demand from the renewable sector boosting values. Prices may start to hit a ceiling in the near term, despite the tight supplies, due to a widening spread to palm stearin. The near term outlook for palm oil is firm, but lower prices later in the third quarter may act as…

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