US biodiesel markets posted a modest uptick in February, while January remained range-bound with steady sentiment. Prices rose about 1% in February, underscoring a mild upward bias amid balanced demand. Demand for UCO-based biodiesel stayed steady across channels, supporting firm but contained spot activity. Upstream UCO costs showed hike, underpinning a higher production cost. A disruption occurred when Chevron Renewable Energy Group’s Grays Harbor unit faced force majeure, trimming regional capacity and flows. Yet January's benchmark for UCO-derived biodiesel remained anchored by normal operating rates, preventing sustained price pressure. By month-end, a mild upward bias persisted as procurement activity firmed modestly. The 12-week moving-average tone was mixed to mildly bullish, signaling balanced blending demand. Looking ahead, market direction will hinge on UCO collection flows, plant outages, and procurement ahead of blending commitments.
