Demand for Brazilian tallow weakens in domestic market; BFT prices down

Demand for Brazilian tallow weakens in domestic market; BFT prices down

The main reference for soap producers, BFT max 3.5% free fatty acids (FFA), CIF São Paulo, inclusive of 12% tax, was assessed at 6.30-6.50 Reais ($1.05-1.08) per kg in the week to Thursday, down by 0.10-0.20 Reais per kg from 6.50-6.60 Reais per kg a week earlier.

An offer for BFT max 3.5% FFA was heard as low as 6.20 Reais per kg, as fewer buyers were reported in the local market. A seller said they lowered their offers due to weaker demand.

Some local buyers told Fastmarkets they are waiting for better price opportunities in the next two weeks before the year end, mainly for January deliveries.

“Demand is weaker than supply, as slaughter rates are stronger ahead of end-of-year celebrations, so prices might be good for buyers by the end of December,” a source said.

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