Ethanol Blog
Myke Feinman Refine Fuels Reporter

Friday 11/01/13

RFS Uncertainty Sending Jitters in Biodiesel RIN Market

Biomass-based diesel D4 Renewable Identification Number prices sunk to their lowest level this year, as uncertainty mounts for the 2014 Renewable Fuel Standard blending mandates. 2013 D4 RINs peaked in value this year at $1.45 July 17 before spiraling down to an all-time low of 31.50cts Tuesday (10/29), shortly after the EPA issued U.S. September production volumes. D4 2013 RINs were talked early Friday in a 33cts to 36cts bid/ask spread.

"Trading has been choppy due to uncertainty of the EPA announcement," one trade source said this morning.

The 2014 biomass-based diesel Renewable Volume Obligation has yet to be finalized by the Environmental Protection Agency, set this year at 1.28 billion gallons and 1.92 billion RINs. RINs generated through September are roughly 1.8 billion.

"As indicated by the EPA, the biodiesel industry has once again produced sufficient volume of product to meet or exceed the mandated requirements," commented Pete Ross, analyst for Frazier Barnes and Associations of Memphis, Tennessee.

"Although 2014 is uncertain since we do not have a formal RVO at this time, the market expects that biodiesel will retain its current requirement of 1.28 billion," Moss continued. "In that case, production and RIN values will begin to climb again in the spring of 2014."

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

(CZ)

Posted at 11:08AM CDT 11/01/13 by Myke Feinman
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