Platts launches daily Brazil beef tallow and used cooking oil assessments

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

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 São 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 has launched two daily beef tallow price assessments, one for Brazil's export market and the other for the domestic market.

The export assessment is 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 reflects a minimum volume traded of 1,000 mt with no maximum volume, for loading 31-60 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 is published in dollars per metric ton exclusive of ICMS and Pis/Cofins taxes.

Platts also assesses 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 reflects a minimum volume traded of 100 mt with no maximum volume, for loading 1-20 days forward from the date of publication.

The Mato Grosso beef tallow price assessment is published in Real per metric ton before taxes.

Used cooking oil

Platts has also launched a daily Ex-Works basis Sao Paulo UCO assessment, reflecting FFA levels between 3.5% and 5%, with a max MIU of 2%.

The Sao Paulo UCO assessment reflects a minimum volume traded of 30 mt, i.e. one truck load, with no maximum volume, for loading 1-20 days forward from the date of publication.

The price is published in Real per metric ton exclusive of ICMS and Pis/Cofins taxes.

For the FOB Santos tallow assessment, Platts considers Cash Against Documents (CAD) as the standard payment term, while for the domestic tallow and UCO assessments, Platts reflects standard credit/payment term, which may vary depending on the contractual relationship between the trading parties.

All three feedstock assessments 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 reflect a 5:30 pm Sao Paulo time market close and follow the Platts Sao Paulo publishing schedule.

The assessments are published daily in the Biofuelscan report and weekly on Thursdays in the Biomass-Based Diesel Report, as well as Platts Connect.

A summary of the new assessments and their symbols is as follows:

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