Platts launches Chicago packer-grade beef tallow

S&P Global Platts has launched 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, and a decision note published Aug. 25, 2020.

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

The assessment reflects one to five rail cars with a typical volume of 175,000 pounds of tallow delivered into the greater Chicago area, shipped one-30 days forward. The assessment is published as an outright price in cents/lb. The assessment reflects 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 pounds of inedible tallow in 2019, according to the US Department of Agriculture.

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