Distillers’ corn oil (DCO) traded higher out of the FOB Midwest markets on Monday November 11 in what was otherwise a quiet market to start the week.

A moderate number of railcars traded from the FOB Missouri River market for December delivery, rising to 47-49 cents per lb, while truckloads from the FOB Nebraska/Kansas market recorded an increase of 1 cent per lb, reaching 46 cents per lb for November delivery.

In the Gulf, trading was limited but bid/offer spreads were reported higher at 51.0-51.5 cents per lb for December delivery.

One source attributed the recent strength in DCO prices to a mix of factors, including the expectation that the Blender’s Tax Credit (BTC) may be extended in place of clearer guidance regarding 45Z, the influence of palm oil driving the vegetable oil markets and the notion that “staying on the sidelines may not significantly lower the SBO board.”

…