Used Cooking Oil (UCO) has become a key feedstock in the renewable fuels market, driven by sustainability mandates and low-carbon fuel policies. The Chicago Mercantile Exchange (CME) has launched Argus-based UCO futures contracts to help market participants hedge price risks. With rising demand and policy incentives like the 45Z tax credit, UCO prices have rebounded after a decline. These futures offer a vital tool for managing volatility and basis risk, especially for producers of renewable diesel and sustainable aviation fuel.
Key Bullet Points:
- Market Growth
- Policy Impact
- CME Contracts
- Hedging Example


