The tallow market was quiet today, if no trading is done in the Chicago packer market by close of trade tomorrow the market will be unquoted. Chicago lard and CWG traded up sharply today
The Missouri River CWG market moved up yesterday, trading at levels not seen since March 16. Record high slaughter numbers in March helped to build some long positions and push prices lower while the recent slowdowns in productions have created shorts. Hog slaughter is off 15 percent compared to last week and 19 percent from a month ago. The supply disruptions certainly create risk for higher prices in the short term, but also for lower prices in not too distant future. Corn at $3.20 and unknown marketing times for hogs may push more rations into maintenance mode as opposed to weight gain. Heating oil below $0.95/gal is bearish for biodiesel demand and limits feedstock prices as well and with both major demand sectors showing potential for decreased usage at present prices, the risk for May is for lower prices.
Figure 1.
11.15.2024
October soybean crush reaches all-time monthly high; biofuel demand limits rise in soybean oil stocks
The National Oilseed Processors Association (NOPA) reported the October soybean crush at a record monthly high of 199.9592 million bushels, eclipsing the previous record of 196.406 million bushels set...
11.15.2024
UCO 2025 market clouded by China’s cancellation of export rebate
China will cancel its current 13% export tax rebate for used cooking oil (UCO), a key biofuel feedstock, effective December 1, the country’s Ministry of Finance and the State...
11.15.2024
US animal protein prices steady to firmer week on week; SBM under pressure
The US animal proteins market was steady to higher in the week to Friday November 15. Even with decreases in Chicago Board of Trade (CBOT) soybean meal futures, prices...