05.02.2024
UCO, heating oil spread widens
Yellow grease traded as low as 34 cents per lb delivered Carolinas on Thursday May 2, with additional volume heard at 36 cents per lb. Despite the decrease, offers...
In the Midwest, corn oil cash indications were steady to lower this week. Crude corn oil values in the region were steady in a range from 62-64 cts/lb FOB. Indications for refined corn oil in the Midwest slumped, with bids and offers last pegged in the high 70s cts/lb FOB, down from the mid-80s cts/lb about a week ago. Mississippi Valley cottonseed oil (PBSY) indications were heard earlier this week around 70 cts/lb FOB, down 4 cts/lb from mid-September. PBSY cottonseed oil prices are down 28 cts/lb since the beginning of January.
Soybean oil and other feedstock prices have been declining sharply in the last several weeks. Demand in the U.S. interior from the biodiesel and renewable diesel sector has pulled back, as many producers are well covered into part, if not all, of the first quarter of 2024. In addition, renewable Identification numbers (RINs) continue to sink.
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