The market was quiet to close out the week. Fat prices saw widespread, downward pressure this week as cattle, hog and broiler slaughter all have begun to increase to more normal levels. Technical tallow and edible tallow prices remain supported due to lack of availability. Chicago technical tallow in May finished at a record high 155 percent relative price to nearby soybean oil. Through the first week of June the realtor price to soybean oil is 158 percent. Production of edible and technical tallow is going to have to resume before prices fall to levels closer to 2 select 2019 relative prices. With that stated, prices should start to see some pressure from cheaper soybean oil, palm oil, and the potential for imports.
Figure 1.
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