Platts to assess Chicago packer-grade beef tallow Sept. 21

S&P Global Platts will launch a daily tallow assessment, basis Chicago, on Sept. 21, 2020, to provide more transparency on the biofuels value chain.

This decision follows a subscriber note proposing the launch that was published on July 31, 2020.

Tallow is an animal byproduct used in animal feed, chemicals and biofuel production.

The assessment will reflect one to five rail cars with a typical volume of 175,000 lb of tallow delivered into the greater Chicago area, shipped one to 30 days forward. The new assessment will be published as an outright price in cents/lb. The assessment will reflect specifications for all-beef packer tallow as defined by the American Fats and Oils association.

Chicago serves as a hub for tallow trading, with many renderers shipping tallow into Chicago where it is traded and bought for use in different industries. The US produced approximately 3.85 billion lb of inedible tallow in 2019, according to the US Department of Agriculture.

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