Trading out of the Australian and New Zealand markets was quiet this week. The wide spread between tallow and palm prices has piqued additional interest in the APAC markets. Production remains limited coming off the holiday break, with Australian slaughter still well below 100,000 head per week. The significant discount to US material should also attract demand in the near term, from buyers in Asia sourcing from the ANZ and US markets and the buyers moving material into the US.

Used cooking oil prices are up sharply into the EU, as well as the UK. Trading into the ARA ports was done in the $975 – 1000 per tonne CIF, with the next traded level likely moving towards $1050 per tonne. Shipments from Asia have slowed, with freight rates up 300 to 400 percent due to container shortages, COVID restrictions in China, and congested ports. North and South American UCO continues to trade into the EU and UK but at higher prices. COVID restrictions continue to limit restaurant activity,…