Tallow and fat prices were higher out of the Australian and New Zealand markets to start the month. Prices have jumped on strong demand from the North American market, but the rally may short lived on some building fundamental pressure. Supply continues to be strong in the Australian market on a continued big cattle harvest in the country. The MLA estimated national slaughter for Australia at 124,875 head last week, up 87,075 last year. Sources have indicated that farmers have increased their pace of sales to packers as well.
Prices in the interior North American markets were lower this week on pressure from big drops in the heating oil (ULSD) market as well as a steady price erosion in the soybean oil futures market. The nearby NYMEX ULSD contract was off $53/mt on Wednesday and as of midday Thursday, it was trading was down another $41/mt. CBOT December soybean oil futures are off $305/mt since 21 August.
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11.11.2024
Falling biodiesel margins lead to expectations for higher RINs, lower feedstock cost
Biodiesel margins continued to fall during the week ending Friday November 8, with rising feedstock cost pushing the soybean oil/heating oil (BOHO) spread to its highest level in more...
11.11.2024
DCO starts the week higher; hog slaughter increases slightly
Distillers’ corn oil (DCO) traded higher out of the FOB Midwest markets on Monday November 11 in what was otherwise a quiet market to start the week.
A...
11.11.2024
US cattle slaughter continues to fall behind 2023 levels
Trading was quiet in the US animal protein market on Monday November 11, with no price changes reported.
Cattle slaughter
Fastmarkets’ research team forecasts cattle slaughter at 625,000...