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.
12.27.2024
US RD, SAF supplies remain strong despite declining import volumes
US supplies of sustainable aviation fuel (SAF) fell sharply in November but reached the highest November volume on record, according to data released on Thursday December 26 by the...
12.27.2024
Animal fats and oils end week steady amid holiday-limited trades
The US animal fats and oils markets held steady on Friday December 27, with limited trades persisting due to the holiday season.
Weekly averages were unchanged from the prior week...
12.27.2024
Relative prices of US meat and bonemeal rise amid depressed soybean meal market: 2024 recap
US animal protein prices were steady to lower on Friday December 27. Some participants reported distressed loads in the market late in the afternoon of Thursday December 26 and...