Trading was mostly quiet today with markets relatively steady. Distillers corn oil did move higher with prices reported in a more narrow range. Biodiesel demand has picked up in a few markets with animal fats well priced versus soybean oil. BFT remains untraded through the Chicago market for both grades, but there are reports of higher priced interest outside of the Chicago market. Export demand should start to pick up at current prices with palm oil moving higher, soybean oil strong and Australian supply tight.

Ethanol production was reported lower for last week, the first decrease in production since the week ending April 24^th. At 908,000 bbl/day, production was down 2.5 percent from the week prior and down 12.8 percent from the prior three year average. Gasoline demand was reported…