US animal fats market holds steady; DCO trades slightly higher

US animal fats market holds steady; DCO trades slightly higher

Animal fats and oils trading in the US were mostly quiet on Thursday September 12, despite a slight rebound in soybean oil futures on the Chicago Board of Trade (CBOT).

Market talk indicated stable prices for both yellow grease and used cooking oil (UCO) on the West Coast, following a significant price spike at the end of August, when FOB Southern and Northern California UCO surged by nearly 25% and 19% respectively.

The higher prices are attributed to continued demand from the feed sector and reports of market tightness, alongside participants reformulating expensive palm oil out of their feed rations in favor of the more affordable yellow grease.

The FOB Southern California UCO marker was assessed at 42-43 cents per lb on Thursday, while the FOB Northern California marker was at 40-41 cents per lb.

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