Ethanol Blog

Volatile RIN trade dominated the spot ethanol market through midday. After D6 2013 tradable Renewable Identification Numbers surged in value since mid-February to a $1.10 high on Monday, their value collapsed today, tumbling sharply with a trade at 60 cents. D6 RINs have since clawed back from much of the decline, trading this afternoon at 93 cents.

The ethanol RIN market is "very volatile," one trade source commented this morning. "The selloff may be due to overbought condition," with most traders reporting they were busy with RINs rather than physical trades.

D6 RINs have spiked on worries about the impending 10% ethanol "blend wall" that some say is now here, concerned there will not be enough gasoline demand to allow for enough ethanol blending to meet this year's annual mandate spelled out in the Renewable Fuel Standard.

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

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