Premium tallow grades are higher out of the New Zealand and Australian markets on tight supply and surging palm oil prices. Flooding in Queensland and New South Wales have significantly affected the market, further complicating an already difficult supply chain. The MLA reported national cattle slaughter at 79,422 head last week, down 14.7 percent from the week prior and 23.3 percent from 2021 levels.

The Indonesian government announced restrictions on palm oil exports this week, contributing to a surge in palm oil prices on Wednesday. Palm stearin prices were as high as $1900/mt FOB Malaysia on Wednesday. The higher palm prices and historically low cattle slaughter are contributing to the strength in the ANZ tallow markets.

EU trading was higher on the big jumps in palm oil prices, supply concerns and big increases in gasoil prices. Used cooking oil (UCO) bids and offers were reported in a wide range this week due to the extreme volatility in the outside markets….