February tallow fatty acids contract levels dip

13 February 2014 15:13 Source:ICIS News

MEDELLIN, Colombia (ICIS)--Pricing in the tallow-based fatty acids market in the US dropped in February as much of the market participates in formula pricing using bleachable fancy tallow (BFT) averages for the previous month.

BFT averages for January saw a decrease of more than 3 cents/lb ($66/tonne) compared with December averages.

C18 stearic triple pressed fatty acids prices were assessed at 52.50-56.50 cents/lb for February, while C18 stearic rubber grade was at 46.50-51.50 cents/lb.

C18 stearic triple pressed, C18 stearic rubber grade supply is trending slightly long, sources said.

Despite C18:1 oleic acid supply being more balanced, its prices were also lower for February because of the declining BFT average.

C18:1 oleic acids were also assessed down by about the same magnitude as the decrease for the January BFT average, to 68.50-72.50 cents/lb.

Average for bleachable fancy tallow – renderer – Chicago

January 2014 

 32.2750 cents/lb

 December 2013  35.6111 cents/lb
 November 2013  35.1316 cents/lb
 October 2013  33.6522 cents/lb
 September 2013  40.6447 cents/lb

C16 palmitic, non-kosher, prices were assessed at a rollover from January levels, with the basis for the spread formed by the FOB Southeast Asian prices plus freight and storage.

By Leela Landress