The 2014 D4 biomass-based diesel Renewable Identification Numbers, the credits used to comply with annual Renewable Fuel Standard Renewable Volume Obligation, are holding steady at 53.0 cents after surging 2.5 cents in value a week ago today.
"That's put in risk premium as we get close to June 20 deadline," said Jerrod Kitt strategist for the Linn Group, Chicago, Illinois. "If an obligated party can buy (D4) RINs at 55 cents, and they were $1.50 last year, why wouldn't you buy it?"
D4 biomass-based diesel RINs posted a high of $1.43 on July 18, 2013. D4 2014 RINs traded at 55.0 cents June 9, although prices subsided as the week went on.
The Environmental Protection Agency has proposed it would leave the D4 biomass-based diesel volume at 1.28 billion gallons this year, the same as 2013, to be finalized Friday.
Myke Feinman can be reached at email@example.com
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