# The low-carbon feedstock squeeze: why UCO, tallow and animal fats are becoming the most fought-over commodities in US biofuels  - Fastmarkets

> Fastmarkets reports that used cooking oil, tallow, poultry fat and distillers corn oil have become tightly constrained as record US biofuel blending mandates and the 45Z credit drive competition for low-carbon feedstocks. It expects the squeeze to persist through 2026 and 2027.

- Date: 2026-06-01 · published 2026-06-01T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/18931-the-low-carbon-feedstock-squeeze-why-uco-tallow-and-animal-fats-are-becoming
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Strong biofuel demand for fats and oils supports soybean oil prices as a substitute feedstock. The tight supply outlook suggests firm feedstock prices into 2027.

## Read by commodity

- SBO: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2026-06-16 | [The 45Z reckoning: what the finalization of US biofuel policy means for every feedstock in the supply chain - Fastmarkets](https://feedsoft.ai/events/15014-the-45z-reckoning-what-the-finalization-of-us-biofuel-policy-means-for-every.md) | -1.5% | +5.5% |
| SBO | 2022-04-26 | [Biofuel feedstocks supply and demand - two key challenges - Fastmarkets](https://feedsoft.ai/events/15399-biofuel-feedstocks-supply-and-demand-two-key-challenges-fastmarkets.md) | -2.4% | -4.2% |
| SBO | 2024-08-05 | [US Sen. Marshall leads letter calling for domestic feedstocks only in 45Z biofuel tax credit](https://feedsoft.ai/events/15194-us-sen-marshall-leads-letter-calling-for-domestic-feedstocks-only-in-45z.md) | +1.0% | +0.7% |
| SBO | 2024-06-05 | [Livestock feed markets and the ‘big oil deficit’ - Manitoba Co-operator](https://feedsoft.ai/events/29738-livestock-feed-markets-and-the-big-oil-deficit-manitoba-co-operator.md) | +1.1% | +6.7% |
| SBO | 2023-06-07 | [Focus: As biofuels boom, companies retool oilseeds to crack new markets](https://feedsoft.ai/events/35578-focus-as-biofuels-boom-companies-retool-oilseeds-to-crack-new-markets.md) | +8.2% | +27.0% |

## Sources

- fastmarkets.com: https://www.fastmarkets.com/insights/the-low-carbon-feedstock-squeeze-why-uco-tallow-and-animal-fats-are-becoming-the-most-fought-over-commodities-in-us-biofuels/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.