Platts to launch Brazil beef tallow and used cooking oil assessments from Dec 2

• Two daily beef tallow assessments to be launched: FOB Santos reflecting export market and ex-works basis Mato Grosso for the domestic market
• Also launching daily UCO assessment ex-works basis Sao Paulo
• Seeks feedback on any Proof of Sustainability documentation typically accompanying exported tallow from Brazil

Platts, part of S&P Global Commodity Insights, will launch daily Brazil beef tallow and used cooking oil (UCO) price assessments, effective Dec. 2, 2024.

A significant increase in demand for waste feedstocks for biofuels is expected in Brazil following the approval of the Fuel of the Future bill. In Brazil, soybean oil accounts for 73% of the feedstocks used to produce biodiesel, followed by beef tallow at 6%, according to data from the National Petroleum Agency (ANP). UCO totals 2.4% of biofuel feedstock, with Sao Paulo state being the country’s largest supplier and consumer of the product.

The assessments were first proposed in the subscriber note published Oct. 1, available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/100124-platts-proposes-to-launch-brazil-beef-tallow-and-uco-assessments-on-dec-2-2024 .

Beef tallow

Platts will launch two daily beef tallow price assessments, one for the export market and the other for the domestic market.

The export assessment will be on a FOB Santos basis, for bulk shipping and reflect a maximum free fatty acid (FFA) level of 10% and maximum moisture, impurities and unsaponifiable (MIU) of 2%.

The FOB Santos port beef tallow assessment will reflect a minimum volume traded of 1,000 mt with no maximum volume, for loading 31 to 60 days forward from the date of publication. Loading periods more prompt than 31 days may be considered and normalized to align with the assessed 31-60 days range.

The Santos tallow assessment will be published in US dollars per metric ton exclusive of ICMS and Pis/Cofins taxes. Platts is also seeking specific feedback on any Proof of Sustainability documentation typically accompanying exported tallow.

Platts will also assess an ex-works basis Mato Grosso state beef tallow price to be transported via truck, reflecting a FFA ranging between 3.5% to 5% and max MIU of 1%.

The Mato Grosso beef tallow assessment will reflect a minimum volume traded of 100 metric tons with no maximum volume, for loading one to 20 days forward from the date of publication. The Mato Grosso beef tallow prices will be published in Real per metric ton before taxes.

Used cooking oil

Platts will also launch a daily ex-works basis Sao Paulo used cooking oil (UCO) assessment, reflecting FFA levels between 3.5% and 5%, with a max MIU of 2%.

The Sao Paulo UCO assessment will reflect a minimum volume traded of 30 mt i.e. one trick load, with no maximum volume, for loading one to 20 days forward from the date of publication. The price will be published in Real per metric ton exclusive of ICMS and Pis/Cofins taxes.

For the FOB Santos tallow assessment, Platts will consider cash against documents (CAD) as the standard payment term, while for the domestic tallow and UCO assessments, Platts will reflect standard credit/payment term, which may vary depending on the contractual relationship between the trading parties.

All three feedstock assessments will consider market information reported to Platts and published as heards throughout the day, including firm bids and offers, trades, and indicative values, as well as any other data deemed relevant to the assessment process. The daily assessments will reflect a 5:30 pm Sao Paulo time market close and will follow the Platts Sao Paulo publishing schedule.

Please submit any feedback, comments, or questions about this proposal to mrts_biofuelsandfeedstocks@spglobal.com, and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.