04.24.2024
Biodiesel output strong in Q2; producers start locking in Q3-Q4 sales
A second producer echoed this sentiment and said they have had to work a bit harder to secure feedstock to line it up with sales at the right time.
Edible tallow traded down a penny this week, which was the lone mover in the spot tallow market. As has been discussed over the last few weeks, prices in the tallow market historically trade lower in September and October. In the previous ten years, the average price move in September relative to August is – $0.0129; in October, the average price move close to September is down an average of $0.0363. The current BFT market may be in a holding pattern due to overcorrections throughout most of 2020. The August packer BFT Chicago market from 2009 – 2019 averaged $0.0084 lower than July, in 2020 the August average increased by $0.0663. In June, the 2009 – 2019 has been an average increase of $0.0027 per pound relative to May, in 2020 June the average price fell $0.0870 per pound relative to May. The average June, July, and August months have historically been the most considerable demand period for tallow, and relative prices to soybean oil for 2017 – 2019 averaged 102 percent. In…