RINs Continue to Consolidate
RIN traders continue hold the belief EPA is not going lower 2021 blending requirements to the degree that would put ethanol production below the 10 percent blend wall for ethanol. Ethanol RINs remain highly correlated with biodiesel RINs indicating traders feel additional D4 production may be necessary to fill an ethanol RIN gap.
Biodiesel RINs finished the week at $1.93, one percent over values from a week ago and 236 percent above May 29, 2020. Ethanol RINs were unchanged for the week but 297 percent above levels at this time last year. The bean oil/heating oil (BOHO) spread edged fractionally lower as crude prices pushed four percent higher while soybean oil values held steady. The BOHO is 166 percent higher than it was a year ago.
Daily Charts
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01.29.2025
DCO prices strengthen as output, ethanol production decline on week
Prices for US animal fats and oils held steady to higher on Wednesday January 29, with much of the day's trade concentrated in the distiller’s corn oil (DCO) markets.
01.29.2025
Automotive leather sector wary of potential US tariffs on Chinese goods
For most US hide sellers, the market remained quiet on Wednesday January 29, as Chinese tanners were away for their Lunar New Year holiday. But some activity persisted, particularly...
01.28.2025
US animal fats and oils Gulf markets show continued price strength amid tight conditions
The US animal fats and oils markets were stable to higher on Tuesday January 28, supported by ongoing discussions of strong demand.
The Gulf Coast region has experienced...