Proposal to amend US lard, fob Chicago price assessment methodology

The naming convention for this price assessment will be amended to AG-GRS-0005 Lard, Chicago, cts/lb on the proposed date, subject to feedback, in line with market commentary that the existing assessment terms do not accurately reflect how this market is transacted.

Fastmarkets understands that these markets are negotiated on a delivered, railcar, or freight-adjusted basis, with Chicago functioning as a central hub.

The change will maintain consistency with its existing US animal fats price assessments.

A decision notice will be published pursuant to a 20-day consultation period on Tuesday July 28, with the change taking effect on August 4.

The existing methodology for the price assessment in question is as follows:

AG-GRS-0005 Lard, fob Chicago, cts/lb

Quality: Free fatty acids (FFA) max. 0.50%, titre minimum of 38.0°C
Quantity: Minimum one railcar or equivalent
Location: Chicago, fob production point
Timing: Shipment within 30 days following date of sale
Unit: USD Cents/lb
Publication: Daily, Until 3 pm US Central time

It will appear as follows, effective August 4, pending feedback:

AG-GRS-0005 Lard, Chicago, cts/lb

Quality: Free fatty acids (FFA) max. 0.50%, titre minimum of 38.0°C
Quantity: Minimum one railcar or equivalent
Location: Chicago basis, delivered
Timing: Shipment within 30 days following date of sale
Unit: USD Cents/lb
Publication: Daily, until 3pm US Central time

This price forms part of the Fastmarkets fats and oils package.

To provide feedback on this proposal, please contact pricing@fastmarkets.com and fats_oils@fastmarkets.com. Please add the subject heading: “re: Update to lard, fob Chicago.”

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

To see all Fastmarkets pricing methodology and specification documents, go to the Fastmarkets methodology page.