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

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