Packer bleachable fancy tallow (BFT) traded steady today at 41 cts/lb Chicago for three cars. Three cars of choice white grease (CWG) traded steady at 36.5 cts/lb Chicago as well. The rest of the market was similar to Chicago today, steady. There was some trading done into the Manly, IA market at higher prices, up to 46.5 cts/lb delivered.

Exogenous market factors have led to a fairly disrupted and quiet market to start the new year, mainly weather, which has limited trade and forced downtime at several production and demand points throughout the market.

On the surface, animal fat and UCO prices are fundamentally undervalued when looking at the relationship to global prices, like palm oil and soybean oil. However, a general lack of demand, well-bought end users and a dramatic drop in RIN prices are all keeping a lid on near term prices.

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