Spot trades of biodiesel, with or without Renewable Identification Numbers attached, slowed to a standstill this week despite the impending expiration of the blenders' $1 gallon tax credit. The credit expires Dec. 31.
"I was thinking (spot sales) would be pretty hard at the end of the year to capture the tax credit or fill out RIN obligations," commented Jerrod Kitt, strategist for the Linn Group in Chicago, Ill.
Last week, sales of RINless biodiesel in the spot market were on the rise, with trade sources saying blenders were avoiding the volatile RIN markets. This week, markets have been "very slow," a trade source said this morning.
"That's a head scratcher to me," Kitt added.
Myke Feinman can be reached at firstname.lastname@example.org
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