There are two big factors in the International Animal fat market. The first is the demand for fats and oils into Singapore. Currently, with the palm oil prices moving lower there has been less demand and the sellers are seeing less “tire kicking” for other fats/oils into Singapore, both showing lower bids and trading prices. Secondly, the new US administration has given no credible hints on what they will do with the Renewable Fuels Standards which is leaving a lot of uncertainty in the market place. With many of the sellers, especially North American fat sellers, have one eye on Singapore and one eye on the US Government. With “The Donald” at the USA helm, it is anyone’s guess what will happen with the RFS standards. Which is about all I can say on this issue which will continue to have the industry scratching their heads. Enough about that topic.
Another thing that hit me like a big pizza of pie was a statement from a source stating Argentina over the last 45 days has shipped tallow 10% Max acid to the EU for use in biofuels. I have to admit I don’t know about the price nor if this is typical type business that I just discovered. If you can enlighten me please do so at firstname.lastname@example.org.
In the US tallow prices are mostly unchanged, with a good volume of cash trading at $650 pmt for 4% BFT with a small volume trading $11 higher. Otherwise, the US buyers have been booking good volumes of tallow on “formula” contracts which are flat priced when the car is shipped based on an agreed upon formula. Export prices though have seen some weaker prices across the board.
US distillers corn oil production is still very good and moving into the biodiesel operations. There was a report that DCO in Europe was down 10 Euros this week.
There is a definite weakening of tallow and fat prices in AUS, while in NZ prices are mostly steady but from what I can tell they would be biddable.
Palm stearin prices are down to $690 FOB Malaysia this week a $12.50 pmt decline from a week ago. As Ryan mentioned a week ago, there is probably further decline coming in palm stearin as we head into April-May.
European animal fat prices are unchanged to Euros 10/14 lower.Read More