Ethanol Blog

Volatile market changes for ethanol D6 Renewable Identification Numbers, the credits used to comply with Renewable Fuel Standard annual blending mandates are sending ripples through the ethanol markets and oil refiners' bottom lines.

D6 2013 RIN prices plunged in value late last week on news reports circulating the Environmental Protection Agency is considering reducing the Renewable Fuel Volume blending obligation for 2014 from 18.15 billion gallons to 15.22 billion gallons.

Any obligated party under the RFS -- refiners, blenders and importers -- that bought a large amount of 2013 D6 ethanol RINs already or are holding physical ethanol "have considerably overpaid," commented Joe DeAngelis, director market and sales for CIMA Green, Ramsey, New Jersey.

"The (ethanol) plants themselves got a surprise too," he added. "The product in tank right now has way lower profit margins than a week ago."

D6 RINs plunged to 24 cents Friday, the lowest point since January. D6 RINs are currently talked at a 29 cents to 31 cents bid/ask spread today, flat to late Friday.

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

(ES)

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