The market was fairly quiet heading into the weekend. Bleachable fancy tallow prices seem to have settled down after the renderer trade at 22 cents Chicago. The market is teetering between strong supplies and favorable prices relative to soybean oil and corn at the moment. Slower demand for the Chicago market has translated to lower prices, but at 19.5 cents FOB Missouri River BFT has a relative price to nearby corn of 334 percent, 78 points under the prior three year average for July. That value relative to corn and the large number of animals on feed, even outside of the livestock already at finishing weight, add risk for a price reversal in the near term.

Figure 1.

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