The US animal fats and oils markets began the week of Monday August 19 with moderate trading, particularly in the Gulf Coast region.

Tallow delivered into the Gulf was assessed down by 1.50 cents per lb on the day at 44.5 cents per lb, based on trades reported at that price. Bleachable fancy tallow (BFT) in the Gulf market was also heard traded at 44.5 cents per lb for September and October shipment.

Tallow trading on a Chicago basis was quiet on Monday.

Concerns about feedstock quality persist, particularly due to elevated free fatty acid (FFA) levels during the summer months. This has resulted in a limited supply of in-spec material, with sources noting that it remains challenging to secure tallow.

Additionally, sources said that demand from the oleochemical sector should stay strong because tallow-based fatty acids have maintained a competitive edge over pricier vegetable-based fatty acids.

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