Biodiesel Renewable Identification Numbers jumped as much as 2 cents in value Monday as the market anticipates a finalized mandate for biomass-based diesel blending for this year from the Environmental Protection Agency expected June 20.
"I think the market is pushing up with guys positioning themselves in front of the EPA announcement," one trade source asserted this morning.
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D4 RINs with 2014 vintage traded at 56.0 cents and 56.5 cents Monday, up 1.75 cents on the day. D4 2013 RINs traded at 47.0 cents, up 2.0 cents.
"I think if the market pushes up too much too fast, then I believe buyers will pull back," said the trade source.
Under the Renewable Fuel Standard program, EPA proposed late last year that 1.28 billion gallons of biomass-based diesel be blended into petroleum diesel, with RINs used to show compliance with the mandate. The National Biodiesel Board had lobbied for a higher volume obligation of 1.7 billion gallons.
Myke Feinman can be reached at firstname.lastname@example.org
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