US DCO tracks soybean oil prices lower; fats markets steady

US DCO tracks soybean oil prices lower; fats markets steady

The US animal fats and oils markets, aside from distillers’ corn oil (DCO), kept largely unchanged on Wednesday September 11, with many participants adopting a wait-and-see approach ahead of potential effects of hurricane Francine.

Market sources indicated that the hurricane could create a short-term buying opportunity in Gulf-adjacent markets, as some sellers look to shift prompt railcars of product away from the Gulf to hedge against weather-related risks and avoid unloading delays.

Meanwhile, the choice white grease (CWG) and tallow markets were mostly quiet on Wednesday, with no trading reported.

CWG in the Missouri River market was assessed stable on the day at 43-43.5 cents per lb. But market sentiment improved slightly, despite pressure from lower soybean oil prices, with sources continuing to highlight lingering supply tightness.

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