No relief for US fats and oils price – consultant

18 October 2007 00:17  [Source: ICIS news]

By Doris de Guzman

NEW YORK (ICIS news)--Prices of US vegetable oils and animal fats are expected to remain up because of increasing demand and low inventory, a consultant for the animal fats industry said on Wednesday.

“The oils and fats industry is going to be in a tight squeeze for awhile as it accommodates the demand, especially from the industrial sector,” said Bill Hurley, president of Hurley Brokerage, speaking at the American Fats and Oils Association (AFOA) annual meeting in New York.

“The fact is, we are only starting to see the effects of biodiesel in actual fats and oils demand. According to the US Department of Agriculture, consumption of soybean oil for biodiesel is expected to increase by 45% to 4.2bn pounds in the marketing year 2007-2008 compared to a year ago,” he added.

The use of tallow and grease as biodiesel feedstock is expected to increase because of their discounted price compared with soybean oil, the consultant noted.

“Potential demand from biodiesel capacities in Illinois and Wisconsin alone could be 7.16% of the total 9.5bn pounds of animal fats produced in the US,” said Hurley.

The consultant also cited increased export demand as another driver for the price rise in fats and oils since October last year.

The AFOA meeting, which is celebrating its 50th anniversary, ends on Thursday.

By: Doris de Guzman
+1 713 525 2653

< previous article(ICIS Chemical Business podcast November 2, 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly