Complying D5s with D4 creates liquidity challenges

In Illinois, the D5 RIN discount to D4s has narrowed recently, causing liquidity challenges in the past two days at it shrunk to just 50 points. Thanks to higher sugar prices that make ethanol production less profitable, less Brazilian ethanol that has traditionally created the majority of D5 RINs has entered the US this year. Compliance can be filled with D4s, however, resulting in plenty of availability on the market that won’t push D5 prices higher.