US animal fats and oils markets saw mixed price movements on Wednesday September 18, with Gulf Coast markets firming as distillers’ corn oil (DCO) production levels dropped to a two-month low.

Used cooking oil (UCO) was reported at 45 cents per lb delivered to the US Gulf, while yellow grease traded higher at 43 cents per lb delivered.

Tallow prices in the region rose by 1 cent per lb, reaching 46 cents per lb delivered.

With feedstock prices in the Gulf Coast edging higher, sources have pointed to increasing pressure on margins for the renewable fuels sector.

“[Renewable diesel] buyers are certainly not supporting prices or pushing them higher. Several have said that they plan to run down their inventories during Q4 as they prepare for the new 45Z program,” one source said.

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