Barring any unforeseen surprises, D6 renewable fuel Renewable Identification Numbers would continue to weaken in price through the end of this year said trade sources.
D6 RINs peaked in mid-July a penny below $1.50, trading this week in the low 70 cents, or upper 60 cents range.
"The panic is over," a trade source explained. "There is no reason to believe that ethanol RINs will be insufficient to meet mandates as the EPA seems to finally understand the blend wall."
"As we transition toward the end of the year, further weakness is expected as we get closer to meeting existing standards," said Pete Moss, president of biofuels consulting firm Frazier Barnes and Associates, Memphis, Tennessee.
D6 RINs are the credits used by refiners, blenders and importers to show compliance with Renewable Fuel Standard blending mandates, primarily satisfied with corn-based ethanol.
Myke Feinman can be reached at firstname.lastname@example.org.