D4 & D6 RIN Correlation Supportive of Values Holding

D4 & D6 RIN Correlation Supportive of Values Holding

 

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.

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