Spot ethanol prices retreated in New York Harbor and Chicago in line with falling corn futures while the spot value for D6 Renewable Identification Numbers ranged higher amid short-covering by obligated parties.
A trade source said the RIN market is supported by last week's comment by Scott Pruitt, head of the Environmental Protection Agency, who said the agency won't reform the Renewable Fuel Standard on its own. Pruitt said any changes to the RFS law should be made by Congress and not by the agency. Fuel ethanol D6 RINs for 2017 traded at 72.0 cents and 73.0 cents, up 3.0 cents on the session.
D6 RINs are used to show RFS compliance by obligated parties, which includes refiners, blenders and importers. The RFS includes annual demand mandates known as Renewable Volume Obligations that obligated parties must meet.
In physical ethanol trade, prompt supply at the Argo hub in the Chicago cash market traded at $1.47 per gallon, down 1.75 cents. June ethanol barges at the New York Harbor were seen at $1.55 per gallon for a 2.0-cent loss.
George Orwel can be reached at email@example.com
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