D4/D6 RIN Spread Narrows & The BOHO Spread Rises Above $3
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.
The 2021 ethanol RIN advanced to 196.25 cents while the 2021 biodiesel RIN held steady at 197 cents. The D4/D6 RIN spread narrowed to just over nine cents with the D6 RIN remaining tightly correlated to the D4. Without the 2021 RVOโs in place and no word yet on what 2022 might look like, questions remain on the amount of ethanol needed to meet the unknown RVO. If Ethanol alone cannot fulfill its portion of the mandate, the gap will fall to the D4 RINโฆ
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