Ethanol Blog

Biodiesel D4 RINs boosted by D6 RINs on Ethanol Output Cut

Myke Feinman
By  Myke Feinman , Refined Fuels Reporter

The 2014 D4 biomass-based diesel Renewable Identification Numbers, the credits used by refiners, blenders and importers to show compliance with annual blending mandates, gained in value as 2014 D6 renewable fuel RINs were boosted by bullish supply data released Wednesday.

"What I see is that ethanol production was lower yesterday so ethanol RINs went up and pushed up D4s on back of it," a trader said this morning.

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The Energy Information Administration reported U.S. ethanol production tumbled 5.5% to 868,000 bpd during the week-ended Jan. 10 while demand increased 5.4% to 797,000 bpd.

2014 D6 RINs, primarily satisfied with corn-based ethanol, gained 0.75 cents this morning, trading at 30.75 cents. 2014 D4 RINs traded late Wednesday at 46.0 cents and 47.0 cents, up 3.25 cents on the session, talked this morning at 45.0 cents to 48.0 cents, up 0.5 cents.

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

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Eddy Lahens
1/16/2014 | 12:18 PM CST
Myke, if only it was this easy! Check Oxygenated production in the same report. Drop from 83Kbpd to 71kbpd. D6 is not driving D4, since extra ethanol is exported and D6 goes to the shredder. By the way, these numbers are very volatile last week due to the 'Polar Vertex'. Everything gummed up everywhere! No trend here.