Trading was quiet to close out the week; no changes were reported. Demand for tallow remains steady for the near term, with the market well balanced at the moment. Based on history, the question that continues to surface is, “when will the market move lower?”

Over the last ten years, the packer BFT price for the Chicago market has moved higher in October relative to September just twice. In 2010 the October monthly average was up by $0.0087 per pound and in 2016, the market was up $0.0048 per pound. The average price move from September to October for 2009 – 2019 is – $0.0363 per pound. Cheaper cash corn and soybean oil and demand reductions have been the cause of the late third quarter, early fourth quarter slide. Demand is steady, but if the fall in corn and soybean oil continues, it’s reasonable to expect the downward pressure to spill into the animal fats complex, tallow included. The wildcard this year has been Brazilian demand for BFT. There have been numerous…