The Australian tallow market was steady to start the month and trading out of the New Zealand market was higher. Supply and demand dynamics remain relatively unchanged with buyers in North American and Southeast Asia showing strong demand whilst cattle slaughter continues to limp along below the 100,000 per head level. Eastern state slaughter was estimated at 93,487 head for last week by the MLA. The “mostly” in the unchanged statement comes from the uncertainty tied to the US Gulf market. Hurricane Ida seems to have spared the physical buildings of the renewable diesel facilities in Louisiana, but a lack of power and rail embargoes have shut down operations. Sellers appear to be long at the higher prices, but the next traded position is at risk to move lower. 

Trading in the domestic US market is sharply lower this week as sellers look to divert roughly 3,900 MT of material, per day, that would ship to the Gulf market. Bleachable fancy tallow (max 4% ffa) fell to…