The compliance credit market rallied on Tuesday after a White House meeting on the Renewable Fuel Standard, which ended today without a deal.
President Donald Trump met with Republican senators to discuss potential reforms to the RFS program that may be of help to independent refiners who claim they are burdened by the law.
The issue is contentious, with Texas Sen. Ted Cruz calling for a cap on the price of renewable identification numbers, which are used to show compliance with the law, while Midwest lawmakers are opposed to changes that may undermine the federal program. A trade source called it a relief rally because the failure to agree at today's White House meeting means RFS is likely to stay unchanged for a while, and so obligated parties are going to be required to buy RINs to show compliance with the law.
In the cash market, 2018 D6 ethanol RINs traded latest at 65.25 cents for a 6.75-cent gain while 2018 D4 biomass-based diesel RINs changed hands from 85.25 cents, a 4.5-cent gain on the day.
In ethanol trade, prompt supply at the Argo terminal in the Chicago cash market traded during the afternoon window at $1.465 per gallon, down 1.0 cent.
George Orwel can be reached at firstname.lastname@example.org
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