Australian fat prices are flat to kick off the month. Supply remains tight on limited production. The MLA estimated cattle slaughter at 91,070 head last week, down 1.2 percent from the week prior and 30 percent lower from 2019 levels. Trading out of New Zealand was higher, topping out at NZ$2050 (apx US$1425) for edible tallow. Demand from the renewable sector continues to be strong and US demand for the fourth quarter is very strong with increased renewable diesel production expected in the fourth quarter.

Prices for Cat 3 and edible tallow are higher in the EU market. Sources have indicated strong fourth quarter demand and logistics issues continue to disrupt supply, both in the EU and the UK. UCOME prices have soared over the last couple of weeks on higher energy prices. Natural gas prices have skyrocketed on supply concerns into the EU, but comments from Russian President Putin today moved the market lower. ICE Brent futures are up 26 percent since 19 Aug, with has…