Animal Proteins – International

Meat and bone meal prices into Indonesia and China were steady this week as were prices into Malaysia, Taiwan and Vietnam. There remains risk for lower prices in the near term as soybean meal continues to be a much cheaper alternative. With July futures hovering around the $290/ST ($320/MT) levels, meat and bone meal is much less attractive option.

Trading out of the New Zealand and Australian markets was steady with last week’s report. Cattle slaughter in Australian remains strong with the MLA reporting just over 135,000 head last week, up 4 percent from the week prior. Sheep and lamb slaughter were lower, down 48 percent and 29 percent from last year’s levels. A COVID outbreak at a lamb processing facility is apt to shut production there down for two weeks, which will continue to contribute to the overall tightness in supply. Ovine meal is at risk for a move higher on tighter supplies and reports of strong demand from the US pet…