Animal Fats – International

Animal Fats – International

The fat markets in Australia and New Zealand were quiet this week with many buyers and sellers sidelined due to volatility in the markets. Slaughter picked up last week, but still remains well behind 2021 and 2020 levels. The MLA estimated national slaughter at 92,192 head, up 16 percent from the week prior. Large swaths of Eastern Australia have been devastated by flooding and this is further complicating a market already rife with logistics issues.

The North American market looked to be red hot in the middle of last week, but a sinking energy market cooled any rally before it could accelerate. Most buyers and sellers continue to buy and sell on an as-needed basis, although there are indications that there may be strong tallow supply in the market, adding near term negative price risk. Rail cars remain limited and the rail traffic has been further…

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