Tighter Spot Market Drives Poultry Fat Prices Higher

Tighter Spot Market Drives Poultry Fat Prices Higher

Three cars of packer grade bleachable fancy tallow (BFT-P) traded higher into/through the Chicago market today. Renderer was offered higher, but thus far the interest to pay higher prices for BFT-R are minimal. 

Poultry fat prices were up this week, driven by continued tight supply. Spot availability has been limited with strong demand from the feed sector taking in a lot of material. Prices out of the Mid South market are trading as high as 49 cents per pound today. A tight labor market is tightening the production numbers and with fewer birds going through the harvest facilities, there is less poultry fat being rendered. Corn is offering support as well. July futures are settled below this level at $6.9675, but rounding up and using $7.00 per bushel, the prior three…

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