Sent: Monday, April 08, 2013 10:38 AM
To: OPIS Ethanol Updates
Subject: BIOFUELS UPDATE: ***RINs Rally into The 80s and 90s as Word of New EPA Estimate Spreads
2013-04-08 11:37:27 EDT
***RINs Rally into The 80s and 90s as Word of New EPA Estimate Spreads
It may not qualify as RINsanity, but values for 2013 Renewable Identification Numbers, or RINs, are up sharply this morning, in recognition of the revelation that 500 million less RINs were carried over from 2012, according to numbers released by the Environmental Protection Agency over the weekend.
The carryover of 2012 RINs into 2013 was just 2.1 billion gallons, down from the prior estimate of 2.6 billion gallons, and news of the lower number has sent bids streaking higher this morning. Latest bids for 2013 ethanol RINs were in the realm of 80-81cts/gal with confirmation that at least one transaction was done at 81.5cts/gal with sellers left over at 83cts/gal.
That would represent an increase of more than a nickel from Friday, and it would also represent a rebound of more than 25cts/gal from some of the softer numbers seen toward the end of March. The price for 2013 RINs began the year at just 7cts/gal, and then ascended to $1.10/gal during the worst of the winter buying frenzy.
There is less talk about biodiesel RINs, but sources say that prices continue to track around 10cts/gal above the ethanol RINs. A 92cts/gal deal was recorded this morning for 2013 RINs.
At least one exchange is excited about leveraging the volatility and the lack of transparency that has come to be associated with RINs trading. The CME has launched an effort to initiate a RINs futures market. OPIS will have more details on this effort today.
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