02 November 2010 20:17 [Source: ICIS news]
“Tallow is as tight as it can be. There is little yield on the cattle and a lot of demand, ” one trader said.
Yellow grease prices hit 35.25 cents/lb ($777/tonne, €560/tonne) on Tuesday in active trading, with one supplier expecting even higher prices by next week, according to traders.
Bleachable fancy tallow was priced at 32-33 cents/lb two weeks ago, but moving higher on the rising yellow grease prices, sources said.
Bleachable fancy tallow cash prices in
US tallow and yellow grease shipments were said to be routinely destined for
Traders said the grease markets have tightened to the point that yellow grease and tallow prices are moving to parity because buyers in need of tallow, but unable to find it, were turning to yellow grease.
A combination of lower fat content on cattle going into the
Yellow grease is made from used vegetable oils and is typically a lower priced commodity than tallow.
US grease suppliers and traders include Cargill and Darling International.
($1 = €0.72)
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