Fastmarkets and Intercontinental Exchange (ICE) today announced the launch of the ICE Used Cooking Oil (UCO) Gulf (Fastmarkets) Futures contract to meet growing demand and tackle complexity in the biofuel feedstock market.
Today’s launch provides market participants with a new risk-management solution in the renewable energy sector. It is also an ideal choice for those looking to gain exposure to UCO price movements without the need for physical delivery.
Fastmarkets’ US Gulf-based UCO assessment reflects the primary market region for UCO trade, capturing the broadest data pool necessary for accurate market pricing. This ensures convergence between the futures price and the spot price at contract expiry, further bolstering confidence in market operations.
“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,” said Przemek Koralewski, Fastmarkets’ global head of market development. “This contract will provide market participants with a sophisticated tool to manage their price exposure, ensuring stability and supporting long-term strategic planning.”
The launch of the ICE UCO futures contract is designed to support participants across the biofuel supply chain, including feedstock suppliers, refiners, traders, financial institutions and biodiesel producers.
“Liquidity in ICE’s biofuel complex has been growing rapidly over the last few years,” said Jeff Barbuto, global head of oil markets at ICE. “We’re excited to work with Fastmarkets to add to the momentum and further develop the UCO market.”
