Ethanol Blog

Analysts and trade sources say the recent spike in ethanol D6 Renewable Identification Numbers is caused by the looming ethanol blend wall that is generating higher demand for ethanol RINs and also triggering a price surge in D4 biomass-based diesel RINs.

D4 2013 RINs have more than doubled in price since the start of the year, and spiked 12 cents to trade at $1.00 late Thursday, the largest single-session price spike all year. The bid/ask price as of Friday morning was talked at a wide 93.0 cents to $1.02.

"I believe that the demand for ethanol RINs is having a carryover effect on the biodiesel market," Pete Moss, biodiesel analyst for Frazier, Barnes and Associates, Memphis, Tennessee, said in an interview Thursday afternoon.

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

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