Tight supply, strong demand pushes tallow prices higher again

Tight supply, strong demand pushes tallow prices higher again

The US animal fat and oils market had some afternoon trading at higher prices on Thursday June 13.

In the tallow market, three railcars of packer bleachable fancy tallow (BFT) traded up, to 46 cents per lb delivered Chicago basis. Five railcars of renderer BFT traded higher as well, at 49 cents per lb Chicago basis.

Distiller’s corn oil was generally quiet, although sizeable volumes traded into the Gulf at 48.5 cents per lb delivered.

US federal and state policies to cut emissions are driving domestic renewable diesel (RD) production and capacity growth, and have caused major shifts in US and foreign feedstock markets — vegetable oils, fats, waste oils, and greases (FOGs) — that could be long lasting, the USDA Foreign Agricultural Service (FAS) said in a new report released on Wednesday June 12.

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