Choice white grease prices were higher today, boosted by a strong tallow market and the expectation for tighter supplies moving into March. Chicago BFT had been at a 4.5 cent premium to Chicago CWG, 2.4 cents per pound above the prior three year average for February.

Lower weekly head counts on the hog harvest and lighter hogs tied to the extreme cold are expected to act as a double-edged sword, cutting into the grease production. The current corn market suggests choice white grease is getting towards the top end of a nearby trading range. At today’s price of $5.5625 per bushel, feed fat has a value at 400 percent of the price of corn of 39.75 cents per pound. Offers above that threshold are likely to be met with stern resistance heading into March and the potential for…