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.

Membership is required to view the rest of this post.
Click here to learn more and sign up for a free 7-day trial!