Chicago spot ethanol prices eased Monday on concern over a high level of stock at the Kinder Morgan-run Argo terminal while the values of 2017 Renewable Identification Numbers rallied on talk the Environmental Protection Agency won't delay the 2017 Renewable Volume Obligation any further after the expiration of an executive order signed by President Donald Trump delaying implementation of rules from the prior administration on Renewable Fuels Standard.
"Today's announcement from EPA Administrator Pruitt does not include the 2017 RVO rule for further delay," said one source. "As the 2017 RVO is set to take effect tomorrow, March 21, the exclusion of the 2017 RVO from this list signifies that the Administration will allow the rule to take effect tomorrow."
Another source added, "People are buying 2017 [D6] RINs because they now realized they need it, as they are convinced the EPA won't change the point of obligation for 2017 RVOs. It's still all rumors, but the market's up on it."
In cash trade, prompt delivered ethanol at the Argo terminal in the Chicago market traded several times at $1.48, $1.485 and $1.4875 gallon, down 2.0 cents on the session. 2017 D6 RINs traded at 48.0 cents, 50.0 cents and 51.0 cents, up 12.5 cents. 2017 D4 2017 RINs traded at $1.01, up 4.75 cents.
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