RIN prices soar ahead of 2017 RFS announcement but then fall back after initial rush

In Texas, ahead of the EPA’s 2017 Renewable Fuel Standard draft blending mandate on Wednesday, RIN prices soared 10 cents to 84 cents for D6 ethanol RINs. Previous to the price jump, inter-day movement had averaged around 75 points, but the possible need to increase purchases in order to comply with the 2017 mandate got the market nervous and sent prices higher. Most biofuel producers associations felt that the mandate should have been higher than what was announced as they have the capacity to supply. Prices then fell back on profit trading after the draft RFS was announced.