Distillers corn oil (DCO) traded higher today with strong demand coming from the feed sector. Feed buyers have started to pile into the DCO market, seeing a cheap ingredient relative to other products. The upward trend is likely to continue in the near term with DCO well priced relative to animal fats, soybean oil and corn. Today’s Illinois DCO is market is at an average of 71 percent, 18 points under the prior three year average for May. 

Figure 1.

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