Animal Fats – International

Export prices moved higher out of the Australian market despite the lower palm prices out of Malaysia. Prices in the AUS market are up due to a tighter, global tallow market.  Domestic prices moved lower on lower demand. Slaughter in the Australian market was up last week, estimated at just under 130,000 head which is 51 percent higher than last year and 18 percent over the week prior. Stay-at-home orders are expected to ease in the near term.

Tallow prices out of New Zealand were unchanged on limited activity. Price indications were wide due to the cheaper palm and pressure from buyers in China for lower prices, but limited production. As New Zealand returns to a more normal pace cattle slaughter is expected to pick back up.

Trading in the local US market has been quiet and limited this week due to dramatic cuts in production. The spread of COVID-19…