Soybean Oil Market Continues to Drive Animal Fat Prices Higher

Soybean Oil Market Continues to Drive Animal Fat Prices Higher

More choice white grease (CWG) traded at 53.5 Chicago today, some cars within the 30 day window and additional tonnage for May. Offers for CWG out of the Missouri River market were as high as 50 cents FOB, but the bulk of action today was in the 45 – 47 cents per pound range. Warmer weather is helping to facilitate increased demand from the biodiesel sector and buyers continue to face an environment with limited optionality for feed ingredients and feedstocks.

Distillers corn oil (DCO) trading was done at higher prices today up and down the geographical gamut. Higher soybean oil prices are contributing to the increases as is big demand from the renewable sector and continued demand from the all-veg poultry sector. Delivered values into feed have been indicated as high as 62 cents per pound for April. Bids for May arrival DCO have been indicated at 57 cents delivered Gulf.

The influence of soybean oil (SBO) is not lost on poultry fat with values up in those markets…

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