Animal fat prices fail to track global vegoil prices higher

Animal fat prices fail to track global vegoil prices higher

The US animal fats and oils markets concluded the week stable to lower on Friday November 8, with a few exceptions noted in the Gulf market. The week was marked by market uncertainty, mixed outlooks for year end and early 2025 and post-election strength in vegetable oil markets.

Sources in Europe and the US continued to report lackluster demand for animal fats heading into the end of the year, despite surging vegetable and palm oil prices.

The disconnect between palm oil, soybean oil and tallow is befuddling many in the industry, with sellers asking, “hey, why not us?”

Since September 2, soybean oil FOB Brazil has increased by 25%, crude palm oil FOB Malaysia by 25% and crude palm oil FOB Indonesia by 23%.

The nearby CME soybean oil futures market is up by 14%, trailing the Brazilian market but rallying on strong export demand tied to an overall strong demand picture developing in the global seed/palm oil markets.

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