UCO, heating oil spread widens

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 were reported at 39 cents per lb.

Sellers who may have greater market optionality are asking for a higher price, not just for yellow grease, but for used cooking oil and poultry fat as well.

For the week to Thursday, the soybean oil/heating oil (BOHO) spread hit its lowest level at 75 cents per gallon since the week ended March 1. While the week is not yet complete, the spread is down due to larger drop in soybean oil prices versus heating oil.

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