Distiller’s corn oil prices traded sharply higher today for the spot and forward months. The higher prices are driven by a combination of higher soybean oil prices and tight nearby supplies mixing with strong renewable fuel demand. Prices are up by as much as 24 percent over the last four weeks.

Chicago packer BFT traded higher today as well and prices are up 27 percent over the last four weeks. Buyers in the chemical sector have historically reduced their inventories in December and buyers coming into the market in January are seeing strong end user demand for their products and tight spot supplies in the tallow market. Meat packers are facing labor limitations due to COVID related absenteeism and tallow production is off as a result.

BFT is on pace to finish January 20 percent over the…