Spot ethanol prices moved higher Monday on concerns about tight product supply while the value for 2013 Renewable Identification Numbers were under pressure. This was after the Environmental Protection Agency proposed Nov. 15 to cut Renewable Fuels Volume Obligation for 2014 and said Monday that production of D6 ethanol Renewable Identification Numbers rose 5.8% to 1.177 billion gallons in October.
"Ethanol production is up, so RIN production is up too," said a trader. "Yeah, the RVO cut didn't help," added another trader.
On Monday, ethanol transfer at Argo was talked 8.5 cents higher at a $2.20 to $2.25 per gallon bid/ask spread while November New York Harbor barged ethanol was seen 1.5 cents higher at a $2.30 to $2.35 per gallon bid/ask spread. 2003 D6 RINs traded 18 cents, down from 27 cents a week ago.
George Orwel can be reached at firstname.lastname@example.org.
© Copyright 2013 DTN/The Progressive Farmer. All rights reserved.