Lipid Markets Climb on Improved Rail Traffic and Strong Demand

Lipid Markets Climb on Improved Rail Traffic and Strong Demand

There were significant price jumps in the animal fats, distiller’s corn oil (DCO) and used cooking oil (UCO) markets this week. The biggest increase came from the yellow grease market. Trading out of the Missouri River region was up 8.0 percent from the week prior. DCO prices were up 3.9 percent from the prior week’s average and are up 17.4 percent over the last four weeks. BFT finished the week up 5.6 percent from the prior week’s average. The nearby futures market closed the week over 60 cents per pound, on average, and is up 4.5 percent from the prior week’s average. 

The renewed flow of rail traffic and improved rail car availability helped push the entire fat market higher. Bids for material delivered in rail cars are over 60 cents for the last half of October through the end of the year and the increased optionality for sellers is allowing…

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