05.17.2024
Uncertainty with 45z tax credit may affect Q1 2025 biofuel contracts
The expiring BTC provides a one dollar per gallon blenders credit up front with an additional 30 to 40 cents of credit to producers on the backend. Crimson...
Trading was active at lower numbers today on continued limited demand and pressure from lower heating oil futures. Used cooking oil (UCO) traded down to 41.5 cts/lb del US Gulf. Yellow grease traded in a range of 42-43 cts/lb del Gulf. Tallow traded into the Gulf in a wide range today and was quiet into/through the Chicago market. The lower heating oil market contributed to lower yellow grease and UCO numbers in the California market as well.
Imports of UCO have pressured the market and many are puzzled over the discount of UCO to yellow grease.
The US imported 219,274 mt of used cooking oil in October, according to data from Global Trade Tracker. October imports were by far a record, surpassing the previous high set in September at 173,615 mt.
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