Tallow prices have been witnessing a steady rise lately amid strong demand dynamics

Brazilian tallow prices have been consistently rising of late, driven primarily by strong export demand. Suppliers maintained higher offer levels despite unexpected adjustments to the country’s biodiesel mandate.

Market participants reported trades reaching higher values, with growing interest from U.S. buyers for deliveries scheduled in the coming months. Brazilian tallow remained competitive compared to increasing U.S. domestic animal fat prices, keeping exports strong.

In the domestic market, prices for bleachable fancy tallow (BFT) saw a modest increase. This product, widely used in the local biodiesel industry, reflected the influence of robust exports. However, the Brazilian government's decision to delay the planned increase in the biodiesel blend mandate surprised some feedstock buyers.

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The halt in the scheduled blend adjustment led some biodiesel producers to reconsider earlier bids for tallow. Despite this, suppliers maintained firm offer levels, supported by limited supply and steady export demand. Some market participants anticipated a slight decline in domestic prices in the short term.

Meanwhile, prices for tallow used in the hygiene industry also rose, reflecting a similar upward trend observed across different tallow categories.