American Fats: Precipitous Drops In Energy Prices Translate to Quiet Fat Market

American Fats: Precipitous Drops In Energy Prices Translate to Quiet Fat Market

With huge losses on heating oil and crude prices today, most in the market were content to sit out buying and selling today. The market tomorrow should provide additional insight into market direction, but anything short of a full recovery is apt to correct fat prices lower.

Cattle slaughter finished last week at a robust 647,000 head, up 6.5 percent from a year ago and 3 percent relative to the year prior. Slaughter is forecast to move slightly lower over the next six weeks. This week, slaughter is projected out at 630,000 head, down 2.6 percent from last week. Over the next six weeks, slaughter is forecast at an average of 625,000 head, down an average of ½ of a percent from the prior six weeks. While numbers are expected to be down, production is still expected be strong with the cattle numbers well over 600,000 head. Given the current economic climate, the strong production adds further risk of lower prices to the market.

Figure 1.

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03.27.2024

Illinois Legislation Aims to Create a Clean Transportation Standard

Illinois Legislation Aims to Create a Clean Transportation Standard

Illinois is looking to become the fifth sate to create a clean fuel transportation standard. The Illinois version, if passed, may not be as robust as the ones...

03.27.2024

Sellers see steady to higher prices on interior market trades

Sellers see steady to higher prices on interior market trades

Distiller’s corn oil (DCO) traded higher into the Manly, IA market today, topping out at a high of 47.75 cents lb. Trading into the Gulf and on an FOB...

03.27.2024

Aprill broiler slaughter forecasted below 2023

Aprill broiler slaughter forecasted below 2023

The proximity of the extended Easter holiday weekend kept some participants off the market at mid-week, leaving values generally steady.

Poultry by-product pet grade was reported lower in...

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