Activity in the US animal fats and oils markets eased on Thursday January 30 as the month neared its end on a more cautious note amid ongoing uncertainty.

Sources noted that while prices showed strong momentum the prior week, margins now appeared to be reaching their limits.

And without movement in renewable identification numbers (RINs) or ultra-low sulfur diesel (ULSD) prices, some suggested that feedstock values may struggle to push higher in the near term, keeping a cap on animal fats prices for now.

The New York Mercantile Exchange March ULSD contract settled at $2.4006 per gallon, while B25 biodiesel D4 RINs closed at 77 cents per RIN on Thursday.

“There are not great profits or run times in the renewable [fuel] space,” a source said.

Despite this, indications for used cooking oil and tallow in the Gulf held steady at 50 cents per lb on Thursday.

…