Choice white grease prices out of the Missouri River market increased steadily over the last 12 weeks. The rally in both corn and soybean oil prices have been a significant driver in the market as has strong demand from the feed and biodiesel sectors. The bulk of trading has been done this week at an average of 27.5 cents per pound, but there have been indications of material trading as high as 30 cents FOB into the renewable sector.
Anecdotally, colder temperatures bring about reduced demand for animal fats from the biodiesel sector, but a closer look at the data show otherwise. Per pound usage in 2016, 2017, and 2019 was higher versus the third quarters of those same years. The average choice white grease usage in the fourth quarter for 2016 – 2019 is 49.9 million pounds per month; in the third quarter, the average is 40.5 million pounds per month. Additionally, choice white grease as a percentage of total feedstock usage increased in the fourth quarters of 2016, 2017,…
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...