The top end of the bovine MBM market moved higher into Indonesia, with trading as high as $745 CIF. Buyers continue to pay a premium for quick shipments or perhaps, guaranteed timelines, for material out New Zealand. North American material is trading a substantial discount, but prices continue to move higher due to favorable pricing.

Slower production in Australia has contributed to higher prices for animal proteins. Cattle slaughter was higher last week, but remains well below 2019 and 2020 levels. Favorable pasturing conditions and negative margins for cattle are likely to keep production slow to start the year. Additionally, cattle ranchers are at a stage where herd rebuilding is necessary after big beef demand and high feed prices pushed a big increase in the heifer numbers through the abattoirs.

The US domestic market continues to move higher, albeit at a slower pace. Soybean meal is dictating direction, but with prices falling over…