04.24.2024
Biodiesel output strong in Q2; producers start locking in Q3-Q4 sales
A second producer echoed this sentiment and said they have had to work a bit harder to secure feedstock to line it up with sales at the right time.
Tallow prices are unchanged for Australian tallow. The domestic market is quiet with May tenders underway and the export market appears well balanced at the moment. Tight supplies are expected to continue in the near term. Cattle slaughter was estimated by the MLA at 104,271 head last week, up from the lows of late March and early April but still well behind the prior three-year average. Slaughter this week is likely to be lower with some downtime tied to the ANZAC holiday on April 25th. Prices out of New Zealand were higher for export. Strong demand from China and a tight Australian market have helped to boost prices despite a strong New Zealand dollar. The NZD is up 3.5 percent versus the US dollar over the last four weeks.
Strong demand from the biodiesel sector and higher biodiesel prices have helped to push fat and used cooking oil (UCO) values higher in the EU. FAME prices have been indicated in a range of $1425 – 1450/MT, UCOME nearing $1600/MT….