Prices for animal fats continue downward trend as DCO, ethanol production estimates rise week on week

Prices for animal fats continue downward trend as DCO, ethanol production estimates rise week on week

The US animal fats and oils markets showed notable activity on Wednesday December 18, with market participants closely monitoring broader developments as the year-end draws near.

Choice white grease (CWG) extended its downward trend on Wednesday, pressured by a continued lack of demand.

FOB Missouri River prices dropped to a broad range of 35-40 cents per lb, with 20 trucks reported trading at the lower end throughout the day. Meanwhile, Chicago basis prices edged down by one cent per lb, closing at 40 cents per lb.

In the FOB Indiana market, CWG traded lower within a wide range of 37.5-40.0 cents per lb, with indications heard as low as 34 cents per lb throughout the day. Sources noted that the lower prices are largely tied to the biodiesel sector, while feed demand has helped support prices near the upper end of the range.

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