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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02.26.2024

Braya Begins Renewable Diesel Production in Newfoundland

Braya Begins Renewable Diesel Production in Newfoundland

Braya Renewable Fuels announced their facility in the city of Come By Chance, Newfoundland commenced commercial operations. Initial renewable dieseel production capacity is expected to reach 18,000 barrels...

02.26.2024

Hog Slaughter Forecast Lower Heading into April

Hog Slaughter Forecast Lower Heading into April

There were no confirmed trades in the market and bids and offers were quiet to start the week.
The USDA estimated hog slaughter for last week at 2.578 million...

02.26.2024

Cattle Slaughter Forecast Under 2023 into March

Cattle Slaughter Forecast Under 2023 into March

The markets were rangebound Monday on limited trade reports. 

For the week ending March 2, 2024, cattle slaughter is forecast at 600,000 head, 4.1 percent down from 2023...

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