Although RIN sales are not new, this week concludes the first week where they've been traded on the CME. RIN trading is one week older on the ICE futures markets.
Although trading on the CME and the ICE is new, the markets have been sold on the open market and have been tracked by DTN for a long time. This RIN information has been associated with the spot ethanol markets, and continues to track the direction of the market.
Even though the RIN markets are on the CME and ICE, it is not expected that active trade will quickly develop through the upcoming weeks. These markets are expected to be an ongoing tool more to help to complete a package where traders are in the gasoline, ethanol, distillers grain and RIN markets.
Like a number of the markets that have been rolled out on the futures exchanges, the fact that a market is established does not mean traders will use it. Even if the markets do grow in popularity, it has a long way to go to become a gathering place for buyers and sellers.
Rick Kment can be reached at email@example.com