Ethanol Blog
Myke Feinman Refine Fuels Reporter

Wednesday 03/27/13

Ethanol RINs Continue to Drive Biodiesel RIN Prices

Analysts and trade sources say ethanol D6 Renewable Identification Numbers continue to provide support for or exert pressure on biodiesel D4 RINs. RINs are the credits utilized by refiners, blenders and importers to show compliance with the Renewable Fuel Standard.

On March 25, ethanol 2013 D6 RINs dropped in value, pressuring 2013 D4 biodiesel RINs, with both markets quiet and prices flat March 26. "Ethanol RINs are dragging (biodiesel RINs) down," a biodiesel broker said March 25.

Ethanol D6 2013 RINs traded $1.10 two weeks ago, but have since dropped back to 64.0 cents March 26 afternoon. Biodiesel D4 RINs, with one D4 RIN equivalent to 1.5 D6 RINs, were a few cents higher than D6 RINs, ranging between 68.0 cents and 76.0 cents that day. Early March 27, D4 biodiesel 2013 RINs traded at 77.0 cents while D6 2013 ethanol RINs ranged between 65.0 cents and 68.0 cents.

"Previously, biodiesel prices were artificially high because of the ethanol RIN prices," commented Michael Walker, Quantitative Analyst, Augsburg Energy Ramsey, N.J., on March 26 afternoon. "The biodiesel 2013 RIN premium over ethanol 2013 RINs has been relatively stable between 7.0 to 9.0 cents, indicating that they follow each other well."

Myke Feinman can be reached at myke.feinman@telventdtn.com.

Posted at 2:39PM CDT 03/27/13 by Myke Feinman
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
April  2015
S M T W T F S
         1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30      
Subscribe to Ethanol Blog RSS
Recent Blog Posts
  • An Economic Case for Ethanol
  • Spot Ethanol Gains at Argo, Steady in New York Harbor
  • Grains Council Works to Open Cuban Markets
  • Ethanol Production Sliding Lower
  • Spot Ethanol Advances After Bullish Weekly Supply Report
  • D6 RINs Extend Higher; Spot Ethanol Prices Flat
  • D6 RINs Edge Higher While Spot Ethanol Prices Ease
  • Corn Prices Remain Range Bound
  • DDGS Rise to Highest Level in Five Months
  • Spot Ethanol Prices Weaken Amid Sluggish Demand
  • Gasoline Stocks Change Direction
  • Spot Ethanol Prices Mostly Flat in Lackluster Trade
  • Spring Buying in the Air
  • DDG Prices Rise Slightly in Slow Week of Trade
  • Ethanol Drawing From Strong Gasoline Demand
  • Grains Council Targets Caribbean Markets
  • Spot Ethanol Prices Mixed in Thin Trade
  • April 1st Buying Frenzy on Supply Reductions
  • Bullish EIA Supply Report Spurs Rally for Ethanol Prices
  • Spot Ethanol Prices Moved Mixed After USDA Report