Australia - Much need lift in Tallow prices

The price of 1% FFA (free fatty acid) tallow rose 6% year-on-year in October to average $761/tonne ex works (MLA’s Monthly Co-products Monitor). The price of palm stearine rose 84% over the same period to $645US/tonne FOB Malaysia. While tallow prices take their lead from palm oil, any price rise in A$ terms over the year was moderated by the appreciation of our exchange rate (currently 29% higher than a year earlier at 90US¢ – Infoscan).

During September, Australia exported 45,296 tonnes swt of tallow, a 7% increase on a year earlier. The majority of that volume (22,491 tonnes) went to China, with Nigeria (7,734 tonnes) and Pakistan (4,099 tonnes) also large markets for Australian tallow (Global Trade Atlas). Despite increasing volumes, the value of Australian tallow exports declined in September; falling 27% over the same period to A$34million – largely due to the higher exchange rate and its’ negative impact upon exporters.

Source: MLA.com

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