Leather and tallow: tallow’s quotation rise

Leather

With an offer on par with the demand, the bovine leather prices are stable at the weekly comparatives, estabilishing the lowest monthly average price since 2010’s October, when its value was R$0,74/kg.

Key agents have been reported a downward pressure at the purchasers side, mainly because of the unstable economy. This pressure must affect the prices in the next weeks.

In Central Brazil, the prime leather is quoted in R$0,80/kg, in average, cash and tax free. On the other hand, the common leather is being negotiated at R$0,65/kg, in the same conditions.

At Rio Grande do Sul, the common leather’s price is at R$1,10/kg, cash and tax free.

In the short period, prices may remain stable, but negatively pressured by the market’s pessimism.

Tallow

Due to the rises in the plant based oils prices and a firm demand from biodiesel industries, the bovine tallow prices has risen in both marketplaces monitored by Scot Consultoria.

With Russia’s exit from the terms that guaranteed the Ukraine’s grains drainage by the Black Sea, the unstable climate in production regions in the United States and the downward production of palm oil in Asia’s Southeast, the plant based oils prices are on an upward movement, pressuring a rise in the bovine tallow prices, by consequence.

In Central Brazil, the bovine tallow is costing R$4,05/kg, a 3,8% rise in the weekly comparison, forward and tax free. In Rio Grande do Sul, the price is on R$4,30/kg, a 2,4% rise in the same comparative, on the same conditions.

In the short term, the market may remain stable, but aware in the plant based oils quotations, specially soybean oil, and the bovine available for culling.