Ethanol blog
George Orwel DTN Energy Reporter
Wed Oct 26, 2011 03:01 PM CDT

The value of Renewable Identification Numbers or RINs for ethanol and biodiesel traded lower after federal data detailed higher domestic plant production and supply.

RIN values have been trending down in recent weeks, as plants ramp up output of both ethanol and biodiesel, with market sentiment now viewing that there will be enough supply to meet the Renewable Fuels Standard of 13.95 billion gallons.

RINs are credits that show compliance with the RFS2 mandate. "RIN values are a function of production, not demand," said analyst Jerrod Kitt. "We've been producing well over the mandate. If you shut down every ethanol ...

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