Australia is a large country and can experience the full gamut of weather conditions all at the same time- so that currently ,while water and crops are plentiful in parts of NSW and Victoria , up in the north of the country( Central Queensland) they are in the throws of serious drought with no end in sight within the short term. Read More.
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.