Ethanol Blog

U.S. biodiesel Renewable Identification Number D4 biomass-based diesel values have been sliding this week in thin trading, trade sources say.

2013 D4 RINs changed hands at $1.03 first thing Monday morning and by Tuesday afternoon were down to 99.5 cents to $1.015 bid/ask.

This morning, D4 RINs were at 98.0 cents to $1.01 bid/ask.

"It's been super slow," one trader said Tuesday afternoon.

"There's just a lot of selling pressure today in the market but prices have stabilized as of now," a broker said late Tuesday, countering that trading at his firm has been active this week. But he was puzzled as to the reason for the price decline.

This morning, that same broker said, "The market can get stagnant and the market players fight to push it up or pull it down every day." He added that D4 RINs usually maintain a 9-10 cents premium to ethanol D6 RINs "and they move in tandem as the market moves."

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

(CZ)

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