Australian Dollar remains firm trading in the USD1.0350-1.0450 range not helping the cause!
Soymeal trading at USD$429st on Chicago Board of Trade.
Palm Stearine trading at USD $765mt FOB Malaysia.
Animal proteins have continued to push higher this week as demand remains strong with export demand following. Chinese buyers returned this week following the Chinese New Year Holiday break and is expected to continue given the current price of Fish Meal which is over USD$2,000mt CFR Chinese main ports. Positive news released yesterday was that Australian Poultry rendered products are just about green lit to be exported to Vietnam with others Countries expected to follow soon.
MBM is firming on the back of soymeal strengthening in value and china buying heavily to substitute Fishmeal in feed formulas. Prices above USD750mt CFR South East Asia for MBM 50% protein and some Chinese feed mills are paying higher prices.
Tallow is trading at USD860- 900mt CFR for FFA 4% into the sub-continent. There is decent levels of tonnage around with hot, dry conditions and Queensland beef plants killing 6 days a week.
Outlook is bullish on both Tallow and Animal proteins with no sign of demand subsiding and weather issues in South America threatening the Soybean harvest in Argentina. Next few weeks will be interesting.
Soybeans have seen a sharp fall over the past week down around 8% while soymeal is trading at USD$ 410st. Soybean retreat is on the back of a positive outlook on the South American crop with the size of the crop and yields expected to be better than previously forecasted.Read More.
The disasterous drought in the US ( worst in 60 odd years) has ensured that a high price structure will take us through atleast until the South American Corn and Soybean new crop which will be begin harvesting in April of next year. Hopefully weather conditions will be favourable so that the world can rest a little easier knowing that there will be enough food to go around. Read More.