RINs markets

[SIrwin58]

I posted two articles last week on farmdoc daily about ethanol and biodiesel RINs markets. My most comprehensive analysis of fundamentals in these markets to date. I realize they are on the "wonkish/egghead" side of things, but might be interesting reading for market talk participants who want to know more about the RINs markets:

http://farmdocdaily.illinois.edu/2013/10/more-on-biodiesel-rins-pricing.html

http://farmdocdaily.illinois.edu/2013/10/more-on-ethanol-rins-pricing.html

Look forward to your reactions and questions.

Scott Irwin
University of Illinois

[sw363535]

Scott thanks again,

I for one, sure appreciate your entries here ----- Thanks for taking the time.

[teaspoon73]

  Here is the number one concept to remember. RINs are free, you get one when you purchase a gallon of ethanol. I've been in ethanol for 14 years the only time anyone cared about RINs is when a perceived shortage was at hand. The last go around was trumped up by a couple of banks and some refiners who DO NOT want to see a 15% blend. There is no blend wall when you put 15% ethanol in the pump. Ethanol is 90 cents cheaper than RBOB, so the more you blend the cheaper gas is at the pump.  Ethanol is an oxygenate, that cleans the emissions from the exhaust. Without it our cities air quality would look like Bejing China's. Heavy smog. The petroleum industry is not your freind, they will poisen you take your money for over priced fuel and suck over 65 BILLION in tax credits from the US govt every year! Want to balance the budget? Eliminate the petroleum industrys tax credits! When you pull up to the pump ask for 15% ethanol!

[425Cat]

Do you think they will lower the rfs teaspoon. Nothing would surprise me with these clowns . We found out the big guy can be bought

[SIrwin58]

Yes, I believe the EPA is going to move forwrd with the reductions in the ethanol mandate as outlined in the recently leaked documents.

Scott Irwin

University of Illinois

[teaspoon73]

  Lowering the RFS, was not the indication we received when we were in  Washington in Sept. But its the EPA. So if they don't lower it and this is proven as more petroleum shenanigans then what? Wait for the next petroleum puppets to come out?  Just remember the petroleum industry is about to loose another 5% of the market. They will DO and SAY anything. Its easy go to your filling station and ask for a 15% blend. Its Cheaper than regular gas. The petroleum industry gets 65 BILLION in SUBSIDIES every year from you the tax payer do you think they need it? Look up Exxon-Mobil.