Poultry fat prices moved lower into the Eastern market today as did yellow grease. Stronger production and at times, localized increases in raw material output, are creating pockets of heavy supply. The majority of volume has traded in today’s printed range, but buyers willing and able to take smaller volumes of fat a moment’s notice have bought yellow grease and poultry fat at prices below $0.2000 FOB. The small volume, quick shipment stories are widespread across the market creating the opportunity for those with long positions to fill short positions at a discount.
The fundamentals suggest that the fat market is nearing a bottom with values well priced relative to corn and soybean oil. Additionally, the short week next week ahead of the Independence Day holiday should help to tighten up the supply side of the market.
11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
11.22.2024
Gulf prices average higher despite weeklong declines in SBO
For the week ended Friday November 22, packer bleachable fancy tallow (BFT) remained unchanged from the previous week’s average, while Gulf Coast-delivered tallow rose 2.7%, primarily...
11.22.2024
Bloodmeal largest price mover week on week; November cattle on feed higher
US animal protein prices were mixed to mostly higher for the week to Friday November 22, with only meat and bonemeal showing a slight price reduction due to tighter...