Australian and New Zealand tallow prices are higher this week on continued, tight supply. The Australian market has experienced a confluence of historic factors driving slaughter to very low numbers over the last several months. Starting with a mix of drought and strong beef demand from China due to African Swine Fever wiping out a big chunk of the Chinese hog herd, slaughter levels soared in 2019 and into 2020. Female slaughter levels were at multi-year highs and COVID interruptions and plentiful rainfall put the brakes on the production surge. With restocking in full swing, cattle slaughter has been at decades low numbers and this week a cyber-attack on JBS shut down production for Australia’s largest beef producer. It’s reasonable to expect that cattle slaughter will be well under 100,000 head for this week. The limited production is likely to create shorts in the market and buyers may be forced to pay up to cover. 

Trading for Cat 3 and edible fats is higher again…