DCO premium over CWG hits multi-month low

DCO premium over CWG hits multi-month low

Lard traded steady on a Chicago basis, with 16 cars traded at 41 cents per lb.

Yellow grease traded down at 37.5 cents per lb delivered US Gulf on what was otherwise a quiet day in the Gulf market.

Several sources have said that “the Gulf market is done for May,” referencing a dramatic drop in demand for animal fats, used cooking oil (UCO) and distillers’ corn oil (DCO) for early-May shipment.

The lack of demand for DCO from the Gulf market has weighed on the nearby spot market, with prices falling on Tuesday and bids heard broadly across the FOB market at 38 cents per lb for prompt shipment.

Choice white grease traded as high as 39 cents per lb FOB Missouri River on Tuesday, with some sellers still reporting strong demand from the feed and biofuel sectors.

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