Soybean oil prices rallied today after the WASDE report was released showing lower soybean yields and a reduced carryout for the 20/21 crop year. October futures settled at 33.61/lb, up just over a ½ cent from yesterday’s close. The October heating oil contract was relatively steady with yesterday’s close at $1.0896. While the higher bean oil prices are supportive of higher animal fat prices into the biodiesel sector, the flat heating oil market and recent downturn will do little to incentivize the biodiesel market to pay higher prices.
Corn prices at the CME also moved higher on a production cut in today’s report. December futures were up 3.5 cents, settling at $3.6850/bu. At 400 percent of the price corn, a 3.5 cent increase in corn prices translates into an added ¼ cent value to the feed fat market.
Countering the upward pressure in the market via the SBO and corn markets is the supply. Hog slaughter is estimated at 2.34 million head this week with…
05.03.2024
Biodiesel imports fall to 8-month low in March; exports rise to 3-month high
Biodiesel imported into the US fell in March for the first time in four months while biodiesel exported from the US reached a three-month high.
Import demand from...
05.03.2024
BFT, soybean oil weekly average prices tumble
For the week to Friday, prices were broadly lower compared with the prior week’s average. Packer bleachable fancy tallow was down by 2.2% from the prior week’s average on...
05.03.2024
US animal protein prices remain under pressure; soymeal rises
US animal protein prices were mixed in the week to Friday May 3 but showed no large movements, with multiple market participants traveling for the Petfood Forum in Kansas...