UCO Usage Lower on Diminished Supply

UCO Usage Lower on Diminished Supply

There was plenty of sideways trading today with yellow grease trading steady out of the Mo. River market, Chicago renderer BFT trading in three cars at steady prices and CWG out of the River market at steady prices. Yellow grease and poultry fat did trade at higher levels out of the Mid South and Eastern markets. Feed fat is in tight supply into the Eastern locations and the strenght in that market may start to buoy any weakness seen in the Midwest. 

Yellow grease usage in biodiesel production averaged 52 percent under 2019 levels during the second quarter (Q2) of this year. During the same time period, restaurant activity measured in retail dollars by Federal Reserve Economic Data (FRED) was down 35 percent versus 2019 levels. The lower usage in Q2 was a case of strong demand, but a lack of available supply. A similar situation could play out in Q4 or early Q1 if another…

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