Ethanol Blog

Ethanol D6 Renewable Identification Numbers, the credits used to comply with Renewable Fuel Standard annual blending mandates, have plunged in value over the past two days on news reports circulating that the Environmental Protection agency is considering reducing the Renewable Fuel Volume blending obligation for 2014 from 18.15 billion gallons to 15.22 billion gallons.

"I feel the ethanol RINs are dropping because of the potential reduction of the '14 RVO by the EPA," a trade source said Thursday.

"I think that (rumored RVO reduction) is part of it, plus demand appears to be down and we have some seasonal weakness," added Pete Moss this morning, biofuels analyst and president of Frazier Barnes & Associates.

D6 2013 ethanol RINs traded at 40.0 cents to 40.5 cents Thursday, down 3.5 cents. This morning D6 RINs traded from 31.0 cents to 24.0 cents. They may have found a bottom at 24.0 cents, their lowest point since late January, talked last 29.0 cents to 31.0 cents bid/ask range. D6 2013 RINs peaked mid-July at $1.46.

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

© Copyright 2013 DTN/The Progressive Farmer. All rights reserved.