UCO, DCO prices inch higher while tallow markets face mixed signals

UCO, DCO prices inch higher while tallow markets face mixed signals

Many US animal fats and oils markets continued to strengthen on Thursday February 13, although some sources expressed mixed sentiment on current fundamentals.

Spot and front-month used cooking oil (UCO) prices in the Gulf Coast region increased to 52.0-52.5 cents per lb delivered, extending the week’s upward momentum.

Meanwhile, tallow markets have been active but uneven. After a strong start to the week with renderer-grade bleachable fancy tallow (BFT) trading higher on Tuesday in Chicago, trading has since slowed, though participants still describe the market as firm.

While this uptick pulled delivered Gulf tallow prices to 52.5 cents per lb on Wednesday, sources have questioned why related markets, such as packer BFT and premium grades, haven’t followed suit, particularly because international prices to the Gulf and West Coast have risen in recent weeks.

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