Used cooking oil (UCO) traded higher into the Southeast market on Wednesday May 22, up to 42 cents per lb delivered. Gulf prices were indicated steady at 43-44 cents per lb delivered for domestic product.

Tallow prices were higher into the Gulf on Wednesday, with trading done in a range of 43.5-44.5 cents per lb.

Buyers who had previously taken long positions in the palm market have worked through that supply and are filling in their fat needs with grease and tallow.
The surge in demand from the feed sector, in addition to the long holiday weekend, has tightened up nearby supply and pushed the fat market higher this week.

US ethanol production was estimated at an average of 1.02 million barrels per day for the week to Friday May 17, according to the US Energy Information Administration’s (EIA) Weekly Petroleum Status Report released on Wednesday. The estimate was up by 19,000 bpd from the week prior.

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