Most trading in Renewable Identification Numbers has been in D6 RINs, primarily starch-based ethanol. Trade sources said D5 advanced biofuel RINs are selling at parity with D6 RINs, while strong interest for D6 RINs have lent upside price support for D4 biomass-based diesel RINs which have a greater value in the compliance credit market.
"Most of the RIN volume has been on the D6s, not the D4s and the D4s continue to ebb and flow with the D6," a trade source said today.
The higher volume of renewables that must be used per the Renewable Fuel Standard this year and a near saturation of ethanol at the 10% level in the domestic gasoline market in what is called the blend wall have spurred volatility in the RIN markets.
D6 RINs so far this year peaked at $1.48 on July 17 while D4s peaked at $1.50. Early afternoon, D6 RINs traded at $1.38, although the bid improved to $1.42. D4 RINs are talked at a $1.38-$1.42 bid/ask spread.
Myke Feinman can be reached at firstname.lastname@example.org.
© Copyright 2013 DTN/The Progressive Farmer. All rights reserved.