US Gulf tallow prices stabilize as market shifts focus from import surge to Brazil tariffs

Fastmarkets07-28 12:00

Fastmarkets assessed tallow, max 20% ffa, del US Gulf at 78 cents per lb on Monday July 27, recovering from 74 cents per lb earlier this month but remaining around 14% below the record high of 90.50 ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUS Gulf tallow prices stabilize as market shifts focus from import surge to Brazil tariffs\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-07-28 12:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fastmarkets.com/insights/us-gulf-tallow-prices-stabilize-as-market-shifts-focus-from-import-surge-to-brazil-tariffs/><strong>Fastmarkets</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Fastmarkets assessed tallow, max 20% ffa, del US Gulf at 78 cents per lb on Monday July 27, recovering from 74 cents per lb earlier this month but remaining around 14% below the record high of 90.50 ...</p>\n\n<a href=\"https://www.fastmarkets.com/insights/us-gulf-tallow-prices-stabilize-as-market-shifts-focus-from-import-surge-to-brazil-tariffs/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"UCC","symbol_name":"ProShares Ultra Consumer Discretionary","start_time":0,"source_url":"https://www.fastmarkets.com/insights/us-gulf-tallow-prices-stabilize-as-market-shifts-focus-from-import-surge-to-brazil-tariffs/","article_id":"2654883201","we_media_id":null,"thumbnails":[],"rights":{"source":"fastmarkets_highlight","url":"https://www.fastmarkets.com/insights/us-gulf-tallow-prices-stabilize-as-market-shifts-focus-from-import-surge-to-brazil-tariffs/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2654883201","pubTimestamp":1785211200,"columns":[],"sourceInfo":{"source_id":"fastmarkets_highlight","name":"Fastmarkets"},"weMediaInfo":null,"summary":"US Gulf tallow prices have begun stabilizing after retreating sharply from record highs reached earlier this year, as the market works through a wave of imported feedstocks that pressured prices through June and early July. With nearby supply now appearing more balanced, attention has shifted toward whether newly implemented tariffs on Brazilian tallow could affect the US market’s ability to attract imported feedstocks later this year, when renewable diesel producers return to the market and compliance demand builds.","collect":0,"end_time":0,"defaultTopTitle":"fastmarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"UCC":"ProShares Ultra Consumer Discretionary","IUSA":"Amberwave Invest USA JSG Fund","RSEE":"Rareview Systematic Equity ETF","BK4582":"ESG ETF-MSCI","WLDR":"Affinity World Leaders Equity ETF","TRUI":"VanEck Industrials TruSector ETF","SPXN":"Proshares S&P 500 EX-Financials ETF","UCO":"二倍做多彭博原油ETF","EBIZ":"Global X E-commerce ETF","SUPP":"TCW Transform Supply Chain ETF","HALX":"Tuttle Capital Heavy Assets Low Obsolescence ETF","DRES":"GMO Domestic Resilience ETF","BINT":"Bluemonte Global Equity ETF","AMER":"Emles Made in America ETF","VEXC":"Vanguard Emerging Markets Ex-China ETF","PRXI":"Praxis Impact International ETF","RGLO":"Global Equity Active ETF","FFGX":"Fidelity Fundamental Global ex-U.S. ETF","FXD":"First Trust Consumer Discretiona","DISV":"Dimensional International Small Cap Value ETF","ACWX":"iShares MSCI ACWI ex U.S. ETF","SHPP":"PACER INDUSTRIALS AND LOGISTICS ETF","CLIX":"ProShares Long Online/Short Stores ETF","FUE":"ELEMENTS Linked to the MLCX Biofuels Index Total Return","ACSI":"American Customer Satisfaction ETF","TISC":"Thrivent International Small Cap ETF","RKNG":"Defiance Retail Kings ETF","EUM":"ProShares Short MSCI Emerging Ma","IBUY":"Amplify Online Retail ETF","SNTH":"MRP SYNTHEQUITY ETF","EWZS":"MSCI巴西小盘股ETF-iShares","CORO":"ISHARES INTERNATIONAL COUNTRY ROTATION ACTIVE ETF","CDIG":"City Different Investments Global Equity ETF"},"translate_title":"随着市场焦点从进口激增转向巴西关税，美国海湾牛油价格企稳","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EUM":1.5,"PRXI":0.65,"VEXC":1.5,"CORO":1.5,"ACWX":0.65,"UCO":1,"CLIX":1.5,"SUPP":1.5,"ACSI":1.5,"RGLO":0.65,"FFGX":1.5,"TISC":0.65,"FXD":1.5,"SPXN":1.5,"AMER":1.5,"DISV":1.5,"HALX":1.5,"SHPP":0.65,"BINT":0.65,"EWZS":1.5,"EBIZ":1.5,"IBUY":1.5,"UCC":1.5,"RKNG":1.5,"SNTH":0.65,"WLDR":0.65,"IUSA":1.5,"DRES":0.65,"RSEE":0.65,"CDIG":0.65,"TRUI":1.5,"FUE":0.75},"content_text":"Fastmarkets assessed tallow, max 20% ffa, del US Gulf at 78 cents per lb on Monday July 27, recovering from 74 cents per lb earlier this month but remaining around 14% below the record high of 90.50 cents per lb reached on June 9.\nThe recent recovery indicates the market has begun absorbing the initial wave of imported feedstocks that pressured prices through June. Rather than continuing lower, prices have stabilized as buyers work through accumulated inventories while waiting for renewable diesel demand to strengthen later in the year.\nThe reversal has been swift. Greater policy certainty following the EPA’s final Renewable Volume Obligations (RVOs) for 2026 and 2027 strengthened biomass-based diesel economics and encouraged aggressive import programs across multiple feedstocks. Recent EPA data showed domestic biodiesel and renewable diesel output increased in June, while biodiesel imports also rose sharply from May.\nMore credits are required\nBut despite the increase in supply, net D4 renewable identification number (RIN) generation stood at 38.4% of the effective biomass-based diesel mandate through June, leaving roughly 5.59 billion D4 RINs still required to satisfy 2026 obligations. Despite stronger June production, obligated parties still require billions of additional credits before year-end, keeping the market focused on whether feedstock supply and biofuel output can expand quickly enough to narrow the remaining compliance deficit.\nThe stronger economics helped propel Gulf tallow to record highs but also opened import arbitrage opportunities that drew foreign feedstocks into the US market.\nThose cargoes began arriving in late spring, coinciding with planned renewable diesel refinery maintenance and softer nearby demand, triggering a broad correction across US fats and oils markets.\nLatest available US Census Bureau trade data showed imports of inedible tallow climbed to 92,116 tonnes in May from 90,027 tonnes in April, more than doubling from March volumes and marking the highest monthly total so far this year. Meanwhile, imports of animal and vegetable fats and oils, commonly used as a proxy for used cooking oil (UCO) and related waste oils, rose to a record 144,347 tonnes, underscoring the scale of feedstock inflows attracted by elevated US prices.\nThose imports have continued arriving throughout June and July, leaving renewable diesel producers comfortably supplied in the nearby market while traders gradually work through accumulated inventories.\nThe correction marked a shift from a policy-driven market to one increasingly governed by physical supply and demand fundamentals, with elevated imports, refinery maintenance and improved inventory coverage replacing policy expectations as the primary drivers of nearby pricing.\nImportantly, the latest tariffs were implemented only after prices had already retreated sharply from their June highs, helping explain why the announcement has had little immediate impact on the physical market.\n“The nearby market is well supplied, but people are already thinking about the next buying cycle,” one US participant said. “The question isn’t today’s inventory, it’s whether imports still make sense once buyers come back into the market.”\nWith much of the second-quarter import program now absorbed, attention has increasingly shifted from nearby inventories toward the economics of the next round of imports.\nSection 301 tariff\nBrazilian tallow is now subject to a combined 37.5% US tariff following implementation of a 25% Section 301 tariff alongside a separate 12.5% duty resulting from a forced-labor investigation. Australian exports, by comparison, remain subject to a 12.5% tariff.\nThe higher duty is particularly significant given Brazil’s growing role in US feedstock supply. Brazil shipped 20,974 tonnes of inedible tallow to the US in May, making it the largest foreign supplier during the month.\nDespite the increased landed cost, however, few participants expect Brazilian exports to disappear altogether.\n“We don’t believe it will close the arbitrage,” one trader told Fastmarkets. “FOB prices will adjust to keep it open, albeit less profitable than before.”\nParticipants broadly agreed that the tariffs are more likely to compress margins across the supply chain than immediately halt trade flows. If Brazilian exporters lower FOB values sufficiently to offset part of the additional duty, US buyers could continue importing Brazilian tallow despite the higher landed costs, limiting any near-term disruption to physical supply.\nWhether that adjustment proves sufficient remains uncertain. Brazilian exporters must now determine whether absorbing part of the tariff preserves enough margin to justify shipments into the US or whether alternative export markets offer stronger returns. That commercial decision, rather than the tariff itself, may ultimately determine how much Brazilian tallow continues flowing to the Gulf Coast.\nAustralian suppliers could receive increased interest because of their relative tariff advantage, although participants cautioned that Australia’s exportable surplus is unlikely to fully replace Brazilian volumes if shipments to the US decline. One Australia-based exporter noted that nearby US demand remains muted because renewable diesel producers are well covered, with some Australian tallow instead redirected to Singapore for August shipment.\nLonger-term implications\nThe longer-term implications could prove more significant than the immediate market reaction. Unlike UCO, global tallow supply is inherently constrained because production is tied to livestock slaughter rather than price signals, limiting the market’s ability to quickly respond to stronger demand through increased production.\nThat structural constraint has become increasingly important as US renewable diesel capacity has expanded. Despite policy changes that increasingly favor domestically produced feedstocks under the 45Z Clean Fuel Production Credit, the US market has continued relying on imported tallow during periods of elevated demand. Brazil’s emergence as one of the largest foreign suppliers has become an increasingly important part of that supply balance.\nIf higher tariffs ultimately reduce Brazilian shipments rather than simply compress exporter margins, domestic rendered tallow could become increasingly valuable once existing inventories are worked through and renewable diesel producers return to the market. Market participants noted that, with RVOs continuing to increase and domestic tallow production constrained by livestock processing rather than price incentives, imported volumes are likely to remain an important component of US feedstock supply.\nThe immediate impact of the tariffs has been muted by comfortable inventories and slower seasonal demand. The larger question is whether the US can continue attracting enough imported tallow to supplement constrained domestic production once renewable diesel producers begin securing feedstock for year-end compliance.\nWhile the second-quarter rally was driven by policy announcements and the subsequent correction by a surge in imports, the next phase of the market may hinge on whether Brazilian exporters continue serving the US market by lowering FOB prices or redirecting volumes elsewhere. If imports become less competitive as demand strengthens, domestic feedstock values could firm as buyers compete for a finite pool of available supply.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.46.0","shortVersion":"4.46.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2654883201","isCrawlerRequest":true}