The renewable compliance market weakened sharply early Friday amid discussions in Washington, D.C., to reform the Renewable Fuel Standard. In the White House on Thursday, President Donald Trump met with several U.S. ethanol producers two days after hosting four Republican senators at odds over the RFS in an attempt to find a compromise between the opposing camps.
U.S. Sen. Ted Cruz, a critic of the federal program, proposed a 10-cent gallon cap on the price of renewable identification numbers, with RINs the credit used to show compliance with the RFS. Ethanol supporters argue a cap on RIN prices would be harmful to renewable fuel producers and farmers, and undermine the intent of the RFS. No deal has been reached, with the uncertainty pressing RIN values down.
Trade sources said 2018 D6 RINs traded at 50 cents, 51 cents and 52 cents for a 10-cent loss, with 2018 D4 biomass-based diesel RINs trading at 80 cents for a 5.5-cent loss.
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