Australian and New Zealand tallow prices traded sharply higher on tight supplies. Australian cattle slaughter remains well under the prior three year average, crossing the 100,000 head per week threshold for just the first time in 2021 this last week. The MLA estimated eastern states cattle slaughter at 100,875 head, down 15 percent from year prior levels. Reports of a shipment of tallow out of the Australian market for the US have piqued the interest of buyers and the increased competition has helped to push prices up by as much as US$105/MT from the last traded level. The upward correction was overdue given the supply constraints in the Australian market and the discount to palm.

Fat and UCO prices continue to move higher into and within the EU and UK markets. Trading CIF Rotterdam was indicated at $1080 – 1100 this week, but there is potential for the next traded level to move higher. US  ISCC certified material is trading as high as $1100/MT delivered to East Coast…