US biofuel feedstock DCO output lower in December

US production of biofuel feedstock distillers corn oil (DCO) dropped in December by 6.6pc from the prior month, the US Department of Agriculture (USDA) said in its Grain Crushings report.

US output of DCO totaled 174,416 short tons (st) in December, down from 186,644 st in November. Production was 11pc lower compared with December 2021.

DCO is a byproduct of ethanol production and is related to volumes of ethanol produced.

Since the start of January, DCO prices in the US Gulf coast on a delivered basis lost 4¢/lb, with the last Argus-assessed price at 67.5¢/lb on 31 January. Prices across all Midwest regions lost 5.6¢/lb since the start of January to close at 63.25¢/lb on 31 January. DCO prices tracked the weakness in soybean oil futures, which fell by 3.8pc since the start of January amid pressure from better soybean crop prospects in Argentina.

Crude corn oil, soybean oil and canola oil production also provide insight into feedstock supplies for renewable biofuels, volumes of which were released yesterday by the USDA in its Fats and Oils: Crushings, Production, Consumption and Stocks monthly report.

US crude soybean oil production for December was 2.2bn lbs, down by 0.1pc from the prior month and 5.6pc lower than December 2021.

US production of crude corn oil totaled 164mn lbs in December, 3pc lower than November but 8.6pc higher than a year earlier.

US crude canola oil production in December was 146mn lbs, up by 0.7pc from November and 3.5pc higher than a year earlier.

By Jamuna Gautam