Animal fats start week quiet despite strong US, European demand

Animal fats start week quiet despite strong US, European demand

Bleachable fancy tallow (BFT) was quiet in the Chicago market on Monday January 27, following gains late in the previous week, though offers for Gulf deliveries continued to emerge in the “low-50s.”

Meanwhile, used cooking oil (UCO) traded higher into the Gulf in the previous week at 48.5-50 cents per lb delivered, with bids still heard at the upper end of the range on Monday.

Sources attributed much of this strength to strong demand from the oleochemical and fuel sectors, with reports of producers purchasing to support full production runs in February.

“Markets are tight and prices are firm,” a source said.

In related news, Fastmarkets’ research team forecasts US cattle slaughter for the week ending February 1 at 610,000 head, up by 1.84% week on week, but down by 3.55% year on year.

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