There were big drops in the animal fats, distiller’s corn oil (DCO) and used cooking oil (UCO) markets today as the prices continue to be pulled down by a plummeting RINs market. Sources indicated that D4 RINS traded as low as 74 cts today before rebounding this afternoon. At 74 cts for a 2023 D4 RIN, values are off 45 percent from four weeks ago and the per pound of feedstock equivalent of the drop is 11.75 – 12 cts/lb at 1.5 times the RIN value. If fat prices are to fall in line with RINS, there is still some room on the bottom side of the market.

Choice white grease traded down in all FOB markets today, and sellers are looking to the feed sector to help with a market floor. Lower-priced alternatives, including pockets of cheaper cash corn, are continuing to pressure prices into rations. Midwestern biodiesel demand is reportedly very weak at the moment and sellers are looking for outlets. Bids into the Gulf were indicated at 55 delivered today.

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