Proposal to amend US edible, technical tallow, fob Chicago price assessment methodologies

The naming convention for the price assessments will be amended to AG-TLW-0005 Edible tallow, Chicago, cts/lb and AG-TLW-0006 Technical tallow, 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 these markets are 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 tallow 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 methodologies for the price assessments in question are as follows:

AG-TLW-0005 Edible tallow, fob Chicago, cts/lb

Quality: Free fatty acids (FFA) max. 0.75%, titre minimum of 41°C, FAC value max 3
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

AG-TLW-0006 Technical tallow, fob Chicago, cts/lb

Quality: Free fatty acids (FFA) max. 0.75%, titre minimum of 41°C, FAC value max 3
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

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

AG-TLW-0005 Edible tallow, Chicago, cts/lb

Quality: Free fatty acids (FFA) max. 0.75%, titre minimum of 41°C, FAC value max 3
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

AG-TLW-0006 Technical tallow, Chicago, cts/lb

Quality: Free fatty acids (FFA) max. 0.75%, titre minimum of 41°C, FAC value max 3
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

These prices form 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 technical, edible tallow, 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.