Ethanol Blog

2014 D4 biomass-based diesel Renewable Identification Numbers, the credits used to comply with the Renewable Fuel Standard, spiked more than 8.0cts this week as the market speculates the Renewable Volume Obligation would be higher based on the latest production data, driving the need for more credits.

"People are thinking their requirement will probably go up," said Pete Moss, president and biodiesel analyst for Frazier Barnes and Associates, Memphis, Tennessee, adding the market is speculating the RVO would equal actual production for 2014.

The proposed RVO, never finalized this year, was for 1.28 billion gallons. As of Nov. 30, the biomass-based diesel category showed 1.55 billion gallons produced.

"People are required to cover themselves," Moss said.

As of this morning, D4 2014 RINs were talked in a 69.0cts to 72.5cts bid/ask range, up 0.125cts on session and 8.25cts on the week.

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

(BM/CZ)

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