Platts proposes to launch Brazil beef tallow and UCO assessments on Dec. 2, 2024

Platts, part of S&P Global Commodity Insights, proposes to 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 constitutes 73% of the feedstocks used for biodiesel production, 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.

Beef Tallow

Platts proposes launching two daily beef tallow price assessments, one for the export market and the other for the domestic market. The proposed export assessment would be on a FOB Santos basis, for bulk shipping and reflect a Free Fatty Acid (FFA) level of up to 10% and Moisture, Impurities and Unsaponifiable (MIU) of up to 2%.The Santos port beef tallow assessment would reflect a minimum volume traded of 1,000 metric tons with no maximum volume, for loading 31 to 60 days forward from the date of publication. The Santos tallow assessment would 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 also proposes to assess a ExW basis Mato Grosso state beef tallow price to be transported via truck, reflecting a FFA ranging between 3.5% to 5% and MIU up to 1%.The Mato Grosso beef tallow assessment would 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 would be published in Real per metric ton before taxes.

Used Cooking Oil (UCO)

Platts also proposes a daily FOB basis São Paulo Used Cooking Oil (UCO) assessment, reflecting FFA levels between 3.5% and 5%, with an MIU of up to 2%.The São Paulo UCO assessment would 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 and would be published in Real per metric ton exclusive of ICMS and Pis/Cofins taxes. For each of the proposed assessments, Platts would reflect standard credit/payment terms, including Cash Against Documents (CAD).

All three assessments would 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 would reflect a 4:30 pm São Paulo time market close and would follow the Platts São Paulo publishing schedule. Please submit any feedback, comments, or questions about this proposal to mrts_biofuelsandfeedstocks@spglobal.com, and pricegroup@spglobal.com by Oct. 30, 2024. 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.