This chart captures the changing relationship in commodities as biofuels policy has an affect on values in the market place. Historically, we have seen tallow (in this case US export and Australian) trade in a band between Brent Crude prices and Palm.

After 2011 this relation starts to break down with tallow trading at a premium to palm in several time periods.

As the CA Low Carbon Fuels Standard starts to ramp up, and the low carbon model starts to be adopted by other states and countries, we speculate that government incentives will have further impact on historical relationships where rendered products with low CI values will become increasingly valuable.