Fat prices moved higher today in a number of markets with corn, soy and palm prices all dictating market direction. A number of sellers did stay on sidelines today, pushing for higher prices as the strong demand continues to mix with a very finite supply. March corn prices are up 18 percent since December 11^th and at $4.93 per bushel, fat has a value in feed rations at 400 percent of the price of corn at 34.5 cents. Corn prices are expected to continue to rise in the near term, which adds additional upside risk to the animal fats markets. Tallow prices also have room on the topside with palm stearin values hovering around the $1000/MT FOB Malaysia mark, which puts material over 50 cents per pound on a Chicago basis. Shipping delays and congested ports also add a premium to the palm market versus tallow.

Yellow grease into…