November 19, 2007

Australian tallow prices up in October

Australian tallow prices has increased during October, as one percent of FFA (free fatty acid) tallow averaged A$1.17 higher than September, and A$311 above the same time last year, at A$800/tonne ex-works.

The price of 2 percent FFA tallow reached a new record of A$825/tonne ex-works, up A$373 on 2006 and A$45 above the previous month.

The average price of palm stearine hit a new record of US$890/tonne (A$1000/tonne) freight-on-board (FOB) Malaysia for the month, assisting the price of tallow, despite higher A$. Strong demand from China, along with limited supplies from New Zealand also contributed to the increase.

Tallow prices are expected to be steady or even higher in the next few months as a result of reduced supply and an anticipated increase in palm stearine prices.