Biofuel RIN Prices React Wildly to US EPA’s RFS Proposals
(Platts) … In immediate reaction, market participants viewed the proposed obligations as bearish for corn-based ethanol (D6) RINs and bullish for biomass-based diesel (D4) RINs. Advanced biofuel (D5) RINs were expected to also track biomass-based diesel RINs higher, sources said.
Moments before the numbers were released, ethanol RINs for 2015 stood at one prominent brokerage in a bid-offer range of 58-60 cents/RIN. Less than 15 minutes after the release, 2015 ethanol RINs plunged to trade as low as 48 cents/RIN, the lowest traded level in more than six months.
On the opposite spectrum, biodiesel RINs were in range of 85-88 cents/RIN shortly before the release, but soared to trade as high as 98 cents/RIN less than 15 minutes after the release, with offers continuing to rise higher. Entering Friday, biodiesel RINs had not been reported traded above $1/RIN since January. READ MORE and MORE (Reuters) and MORE / MORE (FarmFutures.com) and MORE (Platts) and MORE (Platts)
Excerpt from Reuters: The contract was trading at 33.60 U.S. cents per pound by 1009 GMT on Monday, up 0.8 percent, while the most active September soybean oil contract on the Dalian Commodity Exchange was up 1.8 percent.
The rally came after the U.S. Environmental Protection Agency announced an increased target for biodiesel use, for
which soyoil is a key feedstock. “It’s the external markets – palm is riding high on everybody’s coat tails,” said a trader with a foreign commodities brokerage in Kuala Lumpur. READ MORE and MORE (Wall Street Journal)