Over the last three years the strong production in the grain and oilseed sectors combined with a reduction of growth in some economies, with emphasis on China, have pulled fat and oil prices lower by as much as 40%. Bean oil prices dipped as low as $0.2676 in September of 2015, before bouncing back to the $0.3000 level, where they have remained much of 2016.
During the last three years prices have jumped during the summer, particularly in the animal fats market where seasonal biodiesel demand helps to drive up prices. This was particularly evident in 2014, which saw tight supplies in the hog market due to the PED virus and lower cattle numbers after high feed prices forced many to draw down their herds. The tight supplies combined with a blenders tax credit in place since the start of the year helped to push BFT prices above SBO for much of the summer and push CWG, for brief spurts, north of the 100% market as well.