There was no traded volume reported today, but there was a lot of positioning in the market on changing dynamics. Strong chemical demand and a wide spread to palm has pushed offers for tallow higher, both into the Chicago and Gulf markets. Over the last few days, offers into the Gulf for max 20 ffa tallow have been heard as high as 44 cts/lb delivered, bids at 40.5 with the last traded level at 41 cts/lb on Friday.
Used cooking oil bid/offer spreads have been wide as well, with bids heard at 39 cts/lb delivered, offers out above 42 cts/lb with confirmed trading last week at 39.5 – 41.5 cts/lb.
It’s likely the wide spreads will continue in the near term as more buyers come into the market and as non-fuel buyers may be willing to pay higher prices due to a good value relative to competing lipids.
US Cattle Slaughter Forecast
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