Mixed Direction on International Animal Fat Prices

Mixed Direction on International Animal Fat Prices

Tallow prices were lower out of the Australian market despite continued, tight production. Cattle slaughter was estimated at 103,067 by the MLA for last week, down 31 percent from year ago levels. Trading into most of Asia was quiet with buyers in China out for the Golden Week celebration. Renewable fuel demand remains active and sources have reported premiums over the traditional demand sectors. Buyers in the renewable sector have become more aggressive with direct sourcing of material and are paying a premium to buy into local markets.

EU trading was lower on mixed fats and higher on bone fat and pure beef tallow. UCO out of China was quiet due to holiday downtime. Sources have suggested that buyers may be reaching a bit more to ensure coverage in the fourth quarter. Concerns over the resurgence of COVID cases is driving the additional demand.

The US…

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