Potential trade restrictions on Chinese UCO face headwinds due to price premium

Potential trade restrictions on Chinese UCO face headwinds due to price premium

Three railcars of packer bleachable fancy tallow (BFT) were traded as high as 42.5 cents per lb Chicago basis on Tuesday May 21, while trading into the US Gulf was reported in a wide range of 43-44.5 cents per lb delivered.

Choice white grease (CWG) prices remained steady on Tuesday, with buyers in the feed sector reaching for fat ahead of the long Memorial Day holiday weekend in the US and not finding much spot availability. Prices were higher in the FOB markets. A three-railcar trade was done at 41 cents per lb Chicago basis.

Strong feed demand contributed to higher prices for yellow grease and poultry fat in the Delmarva and Carolinas markets on Tuesday. Yellow grease prices were higher out of the Illinois and Missouri River markets, chasing the CWG markets.

Distiller’s corn oil (DCO) traded higher on an FOB basis, with domestic and US Gulf markets supportive of increased prices.

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