Traded volumes in the US animal fats market remained limited on Thursday August 15, with only a few truckload sales reported on an FOB basis.

In the absence of traded volumes, competing market narratives have emerged regarding supply and demand dynamics.

Some sellers noted consistent demand at previously traded prices and limited nearby supply, suggesting little need to sell material at lower prices.

Conversely, others indicate that sellers are interested in moving material, but buyers have been hesitant to step in and establish a price floor, particularly as soybean oil (SBO) futures have declined by over 6% since Monday August 12, when the World Agricultural Supply and Demand Estimates (WASDE) report was released and the California Air Resources Board (CARB) proposed limiting credits from the use of virgin SBO and canola oil.

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