Can US Yellow Grease Prices Go Higher?
US yellow grease production through June was 9% lower than last year. The cooking oil byproduct is widely collected from the deep fryers of hotel and restaurant establishments. Then recyclers use it primarily to produce biodiesel, but also livestock feed, soap, make-up, clothes, rubber, and detergents. Given that US diesel prices are at a two-year high and Argentine biodiesel imports are being hit by US duties, yellow grease prices are turning up. We expect this trend to continue if July production remains below year ago levels. Restaurants and biodiesel producers can follow the monthly update in Gro.
Brazil’s Soybean Planting Starts Early in Paraná This Season:
Growers in Paraná, Brazil’s second-largest producing state, can start planting soybeans on September 11. This is five days earlier than last year. Brazil is coming off a banner season for soybean and corn production. Domestic storage is clogged. Domestic soybean prices dropped by 30% year-over-year in June as a result of further real depreciation. Growers face a tough economic situation. Furthermore, parts of Paraná are in need of rainfall in the coming month. Traders can be prepared by monitoring environmental conditions in Gro during the remaining days before planting.
Mexico Feeder Cattle Start Heading North:
Mexican feeder cattle typically start moving north to the United States and Canada during this time of year. But this fall could be different. Year-to-date imports of Mexican feeder cattle by the United States are up 24% year-over-year. The number of calves in the US is also close to a 10-year high and producer prices are near a 5-year low. Lower cross-border shipments would have little-to-no impact on US or Mexican beef prices. Still, reduced trade could lower future feeder cattle numbers in the US border states. Ranchers and food companies can keep a close eye on trade and price development within Gro.