D4 RIN prices suggest traders predict tax credit reinstatement

Plantations International News A drop in soybean oil prices since June has led to a decline in biodiesel prices, reducing the blend margin. Since D4 RIN values are a function of the blend margin and the two generally correlate, RIN prices have fallen too. But as University of Illinois economist Scott Irwin writes in a Sept. 10 FarmDocDaily post, “Why is the Price of Biodiesel RINs Plummeting?” the RIN price drop since June more than doubles the blend margin decline. As Irwin points out, improving soybean production prospects in the U.S. and concerns about economic growth in China have led to [...]