Cattle slaughter remains well under 2019 levels in Australia. The MLA reported numbers at just under 121,400 head for last week. Winter slowdowns are expected to keep the slaughter numbers lower in the near term. Improved demand from the renewable sector has helped to push prices higher over the last week for both Australian and the New Zealand market. New Zealand production is expected to fall in the near term, but slaughter delays tied to COVID shutdowns have extended the season longer than in years past.

Strong production continues to keep a negative price tone in the domestic US fat market. Prices have been mostly unchanged this week with the exception of a few poultry fat markets falling $20 – 30/MT. Chicago packer grade bleachable fancy tallow (BFT) max 4% ffa traded as low as $463/MT Chicago yesterday, but an additional 1,225 MT were traded steady with previous levels at $485/MT Chicago. Chemical demand was lower in late May and into June and that mixed with the…