Commodity price reporting agency Fastmarkets and US financial services company Intercontinental Exchange (ICE) have launched a used cooking oil (UCO) futures contract to meet rising biofuel demand.
The US Gulf-based UCO assessment reflected the primary market region for UCO trade, Fastmarkets said on 9 December.
“With the increased volumes and diversity of stakeholders in the UCO market, now is the perfect time to introduce a futures contract that can aid in effective risk management,” Fastmarkets’ global head of market development Przemek Koralewski said.
“This contract will provide market participants with a … tool to manage their price exposure, ensuring stability and supporting long-term strategic planning.”
The ICE UCO futures contract has been designed to support participants across the biofuel supply chain, including feedstock suppliers, refiners, traders, financial institutions and biodiesel producers, Fastmarkets said.
“By offering a … benchmark tied to our … price assessments, ICE and Fastmarkets are facilitating transparency and price discovery in the industry,” Fastmarkets’ regional managing editor Ryan Standard said .
Fastmarkets is active in the agriculture, forest products, metals and mining, and new generation energy markets.
