US Biodiesel Prices Fall 1.3% in early March 2026 as War Impact Remains Limited

Biodiesel UCO CFR Houston prices in the United States softened in early March 2026 after maintaining relatively steady momentum through February. The market transitioned from range-bound stability to a modest correction as traders reassessed near-term demand expectations and inventory levels. Despite heightened geopolitical tensions stemming from the ongoing Middle East conflict, biodiesel pricing remained largely insulated from war-driven volatility. One key factor was the stable crude palm oil market, with prices holding above MYR 4,150 on the Malaysia Derivatives Exchange. Indonesian producers reported that palm oil exports have not been significantly affected by the conflict because major demand centers remain India, China, Pakistan, and the European Union rather than the Middle East. In the United States, adequate UCO feedstock availability and balanced biodiesel blending demand further limited upward price pressure. As a result, biodiesel pricing continued to reflect domestic supply-demand fundamentals rather than geopolitical risk premiums.