There was unusually high activity in the market for tradable compliance credits for biodiesel, with trades ranging from 39 cents to 50 cents.
The active trade was largely driven after a budget package that passed on New Year's Day to avoid falling off the U.S. fiscal cliff, included a provision restoring the $1 gallon biodiesel blender's credit.
The blender's credit was backdated to Dec. 31, 2011, when it expired. Trade sources also said the price of B12 and B13 RINs fell because of an anticipated increase in supply due to the tax credit.
"We have been strategizing all day today for 2013 and with the drop in RINs, things are jumping around like crazy," said Katirina Tracy, chief operating officer of biodiesel marketer CIMA Trading LLC of Park Ridge, N.J.
Myke Feinman can be reached at firstname.lastname@example.org
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