Prices for US animal fats and oils held steady to higher on Wednesday January 29, with much of the day’s trade concentrated in the distiller’s corn oil (DCO) markets.

March soybean oil (SBO) futures settled at 44.97 cents per lb, down 16 points from the previous day’s close of 45.13 cents per lb, as ongoing uncertainty surrounding US biofuels policy and tax credits kept market participants cautious.

Despite the dip in soybean oil prices, DCO continued to benefit from recent strength in the vegetable oil complex, as well as macroeconomic factors such as the transition to 45Z, under which it is expected to perform well.

Nearly all FOB Midwest and Gulf markets saw gains for both February and March product throughout the day’s trade session.

For example, spot and front-month material in the FOB Missouri River market traded higher between 46-48 cents per lb, while the FOB Indiana/Ohio market rose three cents per lb on the day.

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