US biodiesel prices remained stable, slipping slightly at the start of January 2026, with Biodiesel UCO CFR Houston losing 0.33% from the previous week. The decline was a reflection of temporary domestic supply disruptions versus weakening cost and demand dynamics. Numerous maintenance shutdowns and force majeure declarations at major US facilities led to periodic tightness, which was balanced by steady imports from Europe and falling European export prices. Reduced production cost support from lower feedstock prices, mainly due to palm oil price decrease. Demand stayed soft as blenders drew on inventories amid seasonal slowdown and policy uncertainty. The flows of feedstock were also influenced by US-Brazil trade relations, notably duties on Brazilian beef tallow, although this did not precipitously affect the US market. In general, the biodiesel sector entered 2026 with solid foundations, with no major disruptions expected in the short term.
