Abstract: Coating compositions containing an oxidized oil and an effective amount of a diluent selected from one of: the group of methyl and ethyl esters of fatty acids, oils and combinations thereof; the group of glycerol and polyglycerol esters of fatty acids, oils, and combinations thereof; and light petroleum oil with a viscosity from about 1 cP to about 100 cP at 100° F., wherein the coating composition has a viscosity of from about 3 cP to about 5000 cP at 140° F., and wherein the coating composition is effective for reducing dust formation and cake formation in the coated free-flowing dry material.. The coating compositions and associated methods of the present invention are particularly suited to reduce dust formation and cake formation in free-flowing dry materials.