C18 stearic acid prices steady in August
Price assessments
Ranges on each of the tallow derived C18 fatty acids were steady moving into August business. Stearic and oleic cuts were said to be representative within the established July spreads, with averages for August contracts ongoing to month-end.
C16 palmitic acid prices were also unchanged this week, as southeast Asian prices on palmitic ranged about 52-54 cents/lb ($1,146-1,191/tonne, €802-834/tonne)
Tall Oil Fatty Acids of 2-6% rosin were similarly unchanged within the July spreads.
Feedstock
Primary tallow fatty acid feedstock, bleachable fancy tallow (BFT) prices closed at 51 cents/lb on Wednesday, 10 August, moving down about 1 cent/lb from the previous Wednesday finish.
BFT was barely under the crude soybean oil finish in the Chicago cash market, as the bean oil came in at 51.91 cents/lb on Wednesday – a slight drop from the previous week.
The narrow spread between the soybean oil price and the tallow price had the attention of biodiesel producers seeking to use more of the bean oil when the price basis allows because the soy methyl ester (SME) prices are typically somewhat higher than the fatty acid methyl ester (FAME) or tallow methyl ester (TME).
Fatty acid producers were watching the choice patterns on biodiesel because the consistent use of the tallow as a biofuel feedstock has been pointed out as one of the causes for rising grease and fats costs.
Co-product glycerine
Prices for biodiesel crude glycerine of 80% purity were unchanged at 5-8 cents/lb, with limited trading done this week.
Splitter crude glycerine prices from oleochemical production was said to be ranging about 14-16 cents/lb, with most business done in swaps, rather than open market trading.
Other
Oleochemical markets matched most other markets by remaining quiet this week because of uncertainties fostered by the drop in crude oil prices and the global debt crisis.
Buyers in most markets were monitoring purchases, keeping inventories minimal while evaluating softer US demand.
($1 = €0.70)
This week in ICIS news at www.icis.com
10/08/2011 10:59 Crude futures rise on interest rate pledge by US Federal Reserve
09/08/2011 22:07 Chem trade group puts chance of US recession at one in three
09/08/2011 19:21 US cuts oil, natgas price outlooks, citing slow economy
08/08/2011 22:40 Cooler US weather helps soybeans more than corn
08/08/2011 20:38 US crude futures plunge $5.57/bbl on US credit downgrade
