Choice white grease (CWG) prices traded higher today on strong demand from the feed and biodiesel sectors. Limited optionality remains the dominant theme driving the market at the moment, particularly for choice white grease and yellow grease(YG). For feed, the option is to include more corn. Cash basis remains at a premium to the futures price and at $5.60 bushel out of Decatur, IL today’s CWG market remains at a sub 400 percent of the price of corn. Carcass quality is likely to dictate continued inclusion of choice white grease at current values.

CWG remains well discounted to soybean oil and with yellow grease prices rising and availability limited, the cost both in…