Premium tallow grades traded lower out of the Australian market this week. Weakness in the North American market contributed to the downturn and with the receiving schedule uncertain in the US Gulf, sellers are seeing less competition from the buyers for the next trading position. There is downside risk due to the demand interruption and the high price of tallow relative to palm, but production remains very tight. Australian cattle slaughter was estimated by the MLA at 88,264 head last week. The weekly estimate is down from last week’s total, well behind the 2018/2019 average as well as the prior ten year average. 

Trading out of the EU was flat on Cat 3 products and higher for edible tallow and lard. UCO prices continue to drift sideways and logistics remain an issue. US sellers are once again competitive into the EU and UK markets due to weakness in the US interior. UCO prices have come off of highs of $1545/MT delivered, sold in late August for October delivery, down…