Trading was quiet in the Australian market with November tenders underway. Price indications are steady heading into next week. There is some pressure from the renewable sector for lower prices out of both Australia and New Zealand, but with palm stearin trading at US$800 FOB Malaysia, buyers don’t have a lot of optionality. Additionally, cattle slaughter remains very tight in Australia. The MLA reported eastern state production at 109,406 head, which is down 29 percent from year-ago levels. The Jacobsen is forecasting continued, low slaughter numbers with restocking and herd rebuilding underway. COVID-19 looms over the market and adds risk for further production limitations, and holiday downtime is not far off.

The US market is steady to higher on bleachable fancy tallow (BFT). Chemical demand has supported the market, and 2020 may be a year where prices don’t see a seasonal downswing. The US’s overall lipid market appears tight, and buyers stepping away from steady to…