Meat and bone meal (MBM) prices into China and Indonesia are steady this week. Demand for New Zealand origin MBM remains strong out of the Indonesian market. Buyers continue to be willing to pay a premium for short transit times. The strong soybean meal market has also contributed strength to the current market.

Trading out of New Zealand is unchanged, but there are indications that increased freight costs may pressure some smaller volume buyers and push more supply back into the domestic market. Australian prices are mostly flat with last week. Slaughter rates continue at a fraction of the non-holiday volume, with several plants still down. There was plenty of rain through December, which may further extend the supply tightness with favorable pasturing conditions keeping the cattle out of the abattoirs.

Poultry proteins in the local US market continue to trend higher. Feather meal prices have doubled since July, driven by the soybean meal market and tight…