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DCO Production and Prices Fall

Alexandra Watts | 08.09.2023

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The market was fairly quiet today with few changes reported. Three cars of choice white grease (CWG) traded up a penny from the last traded level at 65 cts/lb Chicago. Trading out of the FOB markets was mostly sideways, but CWG FOB Carolinas was higher today.
Distiller’s corn oil (DCO) trading was lower for the spot position and material continues to be offered at a discount for the Oct-Nov-Dec window relative to August and September. Sellers are well aware of the backwardation in the soybean oil market and the possibility that buyers may be building positions for Q4 that are heavier soybean oil basis the favorable price.

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