Tight Tallow and Grease Expected Due to Holiday Downtime and Attack on JBS

Tight Tallow and Grease Expected Due to Holiday Downtime and Attack on JBS

Choice white grease and yellow grease prices continued to trend higher on good demand from the biofuels sector and tight supply. Sources have indicated that feed inclusion rates have been cut for June due to the high prices relative to corn. Thus far, the market has absorbed the pushback, and this is partly due to the uncertainty tied to the cyber-attack on JBS. Over the weekend JBS became the victim of the most recent cyber-attack on critical US supply points. Sources indicated no clear timeline for resuming operations but were hopeful that production could resume tomorrow. JBS represents over 20 percent of US cattle slaughtering operations and just under 20 percent of hog production.

The long holiday weekend and today’s downtime at JBS plants…

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