Big Jump In UCO Prices

Big Jump In UCO Prices

There were big jumps in the used cooking oil (UCO) markets today with trading and bids reported as high as 50 cents delivered. Production of all low carbon intensity (CI) feedstocks continues to be tight and buyers are paying a higher price for the credit generating fats and oils. Yellow grease and choice white grease prices are up as well, with limited optionality on feed ingredients or feedstocks for fuel production.

Since the start of the year prices in the fat market have moved sharply higher on a bull run driven by strong vegetable oil and corn prices combined with tighter production. Renderer bleachable fancy tallow prices are up 12 percent, distillers corn oil values are up as much as 15 percent and used cooking oil values are up 12 percent. Choice white grease (CWG) FOB Missouri River prices have moved 10 percent higher over the last three weeks. The slower rate of increase has created a wide…

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